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In The Morning News

Posted By Dave Goldstein On May 13, 2008 @ 7:21 am In Bulletin Today | No Comments

AP: Boomers Cutting Back On Expenses According To AARP Survey
“The economic downturn is hitting roughly one in 10 middle-aged and older Americans especially hard, compelling them to borrow money for everyday living expenses and to seek help from family, friends or charities, according to a survey released Tuesday by the AARP. In the telephone survey of 1,002 adults 45 and older, nearly four in 10 said they had helped a child pay bills or expenses.” As opposed to “older people, a greater percentage of younger baby boomers, those 45 to 54, said they were cutting back on medications, prematurely withdrawing retirement funds and postponing paying bills. ‘For the younger boomers, it’s been an especially rude wake-up call,’ said Jim Dau, a spokesman for the AARP, a nonprofit that advocates Americans 50 and older.”
CNN/Money: Report Warns Of Looming Cash Shortage In Health Care
“At the end of May, global management consultancy AT Kearney is to publish a paper, Healthcare Out Of Balance, warning healthcare systems in developed nations, including the U.S., U.K. and Europe, are simply not sustainable as it is becoming increasingly hard to fund expensive treatments for aging populations.” At a seminar in London, the author of the report said that “today’s healthcare systems were designed for the postwar ‘baby-boomer’ generation, when there where typically six or seven working people for everyone in retirement. That will have dwindled to about three by 2020, he said.”
MarketWatch: Changes In Employee Benefits Have Major Effect On Retirement Status
“Older workers who receive employer-sponsored coverage and don’t expect to have job-based retiree coverage are 16.5 percentage points less likely to retire in any given year than workers with access to health insurance from another source, according to a study released last week from benefits consulting company Watson Wyatt.” Also, “the decision to retire often hinges on the status of the broader U.S. economy,” and with the advent of 401(k)s, “the incentive to retire when markets are up may run counter to employers’ need to ramp up production during a boom time,” which shows what one Wyatt researcher called a “perverse incentive.”


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