No Rest For The Baby Boomers
Global financial crisis has Boomers postponing retirement
SYDNEY - TNS, the global market insight and information group, has today released further results from its Financial Crisis Study. The study looks at how the global financial crisis is affecting consumers in five key countries; the UK, France, Germany, the US, and Australia.
The report reveals that almost half of the Baby Boomer generation (44%) say they will have to postpone their retirement due to the impact of the global financial crisis.
Australian Baby Boomers remain very pessimistic about stock market (and superannuation) returns, with more than 6 out of 10 thinking that Australian shares (59%) and global stock markets (69%) will get worse rather than better in the next six months.
As John Shearer, Director with TNS Finance noted, “The hit that their super funds have taken in the global financial crisis has really shaken up Baby Boomers, many of whom have now seriously started to reconsider their retirement plans. Australian Boomers are much more likely to be planning to delay their retirement than their counterparts in the UK (23%), France (28%) or Germany (13%). Only in the US do we see a similar likelihood to be thinking about delaying retirement (40%).”
Not only are Baby Boomers planning to delay retirement, 71% also say they will have to cut back on spending in the next 12 months, and just over half (52%) say they will be unlikely to be able to save any money in the year ahead. In fact 4 in 10 Boomers (40%) are contemplating working more to increase their incomes over the next 12 months.
Added to this picture of uncertainty is the looming threat of job losses, with more than a quarter of Baby Boomers (27%) fearing their job could be at risk. The one piece of ‘good’ news for the Baby Boomers, is that Gen X and Y are actually slightly more worried about losing their jobs in the current crisis (37%).
As John Shearer notes, “with the under-employed seeking to work more, and Baby Boomers seeking to stay in the workforce longer, this is going to make conditions even tougher for those who do find themselves out of work as the economic crisis unfolds.”
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