Friday, November 14, 2008

Baby Boomers Feel the Squeeze

So we all know those of retirement age are postponing their plans and perhaps working longer, but what about the baby boomers on the cusp of retirement? According to an AARP special report, it looks like baby boomers are rethinking retirement and how they spend their money. Americans, age 45 to 59, that fit in this category are spending less, and trying to save more. Over 70% surveyed reduced how much they eat out since the economic crisis began while half have postponed travel plans. Taking retirement savings more seriously is a good thing for baby boomers. However, it becomes tough when many of these adults are also supporting their college-aged children with high tuition costs.

A key point derived from this article is that the economy will not improve by people not spending money as the baby boomer generation and most of the country seems to be doing at an increasing pace. It is important to focus on ways to make people feel and actually be economically secure. Through the Elder Economic Security Standard Index (“Elder Index”), anyone from legislators to college students can see how the costs of living for elders vary and the essential components in determining economic security in your retirement years. Obviously, as the cost of living increases, the Elder Index numbers will be updated and the updating of numbers is key to elder’s economic security. Contrarily, the Federal Poverty Level, an outdated measure of economic insecurity, fails to keep up with rising costs, such as healthcare, one of elders’ greatest expenses.

The Elder Index is the right tool for determining what people need to make the right decision about retirement. It provides data on the cost of housing, food, transportation, healthcare, and miscellaneous expenses to assist people in determining the best option for them, whether it is working longer, saving earlier, or a combination of both.

No comments: