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Data & Research May 14, 2008
Economic Downturn Causes Baby Boomer Burden
Results of a new survey released by AARP indicates some Baby Boomers are delaying retirement and taking premature withdrawals from their retirement savings as a result of the economic downturn.
Reported by Rebecca Moore
An AARP press release said the survey found more than one out of four (27%) workers age 45 to 64 said they postponed plans to retire because of the recent economic downturn. Almost 25% reported they are prematurely taking money out of their 401(k)s and other investments.
In addition, younger boomers (ages 45 to 54) indicated they are responding by postponing bill payments (27%) and cutting back on medications (17%) to deal with the economic crisis, according to the release.
Retirees and Americans age 65 or older who rely on fixed incomes, are especially feeling the burden of the economic times, AARP found. Almost six in 10 (59%) people 65 and older indicated they are having a harder time paying for food, gas, and medicine, and more than a third (34%) of all retirees have had to help a child pay bills in the last year.
More than one in 10 (11%) retirees reported they have had to seek help from loved ones or charity organizations in the last year.
The national telephone survey of 1,002 people ages 45 and older was conducted April 12 to 23 by Woelfel Research, Inc.
The complete survey results are here.