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AARP and the AARP Bulletin
released the most comprehensive survey yet examining how boomers and their parents'
generation are managing the current economic downturn, from paying for everyday
necessities to changing their investment strategies.
According to the survey,
81% of all Americans ages 45 and older say the economy is in fairly bad or very
bad condition, and almost three-in-four (74%) say their elected officials are
not doing enough to help people caught in the economic squeeze.
“The current economic
downturn is forcing millions of Americans to make very difficult decisions on
their immediate survival and long-term financial security,” said Tom Nelson,
AARP's Chief Operating Officer. “They are looking for help, and they want
more action from our elected leaders.”
BABY BOOMERS, WORKERS
FEELING BIGGEST IMPACT
Baby boomers are feeling
a relatively greater impact of the economic downturn, and some of their reactions
– like compromising their retirement savings and even cutting back on
medications – have negative implications for the future.
More than one out of four
middle-aged and older workers (27%) say they postponed plans to retire due to
the recent economic downturn.
Almost 25% of people ages
45-64 are prematurely taking money out of their 401(k)s and other investments.
Younger boomers (ages 45-54), in particular, are doing things like postponing
paying bills (27%) and even cutting back on medications (17%).
“It may be years before
we realize the full scope of the current economic crisis,” added Nelson.
“Taking money out of your retirement savings has a compounding effect
because that money is not allowed to grow at a time when you have fewer working
years to replace the losses. Even more troubling, shortchanging your health
care can lead to higher health care costs down the road.”
RETIREES, 65+ MORE
ACCUSTOMED TO ECONOMIC PRESSURE
Retirees and 65+ Americans
are more likely to depend on fixed incomes, which means they have less room
to make spending changes and may be bearing the biggest burden of rising prices.
Almost six-out-of-ten (59%)
of people 65+ in this group 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-ten (11%) of retirees have had
to seek help from loved ones or charity organizations in the last year.
“Retirees and older
Americans have had to deal with skyrocketing health care costs on fixed incomes
for years,” said Nelson. “For them, the current economic slump means
more of the same.”
SHARED IMPACT AND
COMMON CONCERNS
Overall, the poll shows
that there is a sense of shared pain and common concerns among boomers and older
generations - both among retirees and those looking to retire in the foreseeable
future. Eighty-one percent of all respondents say the economy is in fairly bad
or very bad condition and 75 percent think it's getting worse.
Almost two-thirds (63%)
of those asked own stocks individually or through retirement plans like 401(k)'s
or IRAs. More than 7 in 10 (72%) of these investors lost money on their portfolio
in the last year.
While most of all respondents
(58%) are not concerned about the impact of mortgage foreclosures on their personal
well-being, almost 9 in 10 are concerned about the effect of foreclosures on
the larger economy and 64% are concerned about the impact on their communities.
AARP and the AARP Bulletin
commissioned the survey, titled “The Economic Slowdown's Impact on Middle-Aged
and Older Americans.” The national telephone survey of 1,002 people ages
45 and older, was conducted April 12 - 23, 2008 by Woelfel Research, Inc.
For more information visit
AARP Bulletin Today or view the the
complete survey here: http://www.aarp.org/research/economy/trends/economy_survey.html.
About AARP
AARP is a nonprofit, nonpartisan
membership organization that helps people 50+ have independence, choice and
control in ways that are beneficial and affordable to them and society as a
whole. AARP does not endorse candidates for public office or make contributions
to either political campaigns or candidates. We produce AARP The Magazine, the
definitive voice for 50+ Americans and the world's largest-circulation magazine
with over 33 million readers; AARP Bulletin, the go-to news source for AARP's
39 million members and Americans 50+; AARP Segunda Juventud, the only bilingual
U.S. publication dedicated exclusively to the 50+ Hispanic community; and our
website, AARP.org. AARP Foundation is an affiliated charity that provides security,
protection, and empowerment to older persons in need with support from thousands
of volunteers, donors, and sponsors. We have staffed offices in all 50 states,
the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
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