Paul Hodges has some interesting thoughts re boomers and their changing spending habits over at his blog.

The extract below is part of his comment;’

‘But they are getting closer to retirement, with a median age of 54 years. And so their need for ‘new things’ is reducing, as is their ability to afford them. Equally, as the above chart from thechartstore.com shows, their savings rate is starting to shoot up. They were let down by the stock market after the dot-com boom; then the housing market disappointed.
So now we seem to be seeing the start of a generational switch from spending to saving in the world’s most important market. From close to zero, the savings rate has already jumped to 6%, as baby-boomers worry about how to afford their retirement, especially as they can expect to live longer than any generation in history’.

Harry Dent argues that the economic cycle is dependent on the generation spending wave. And that indicates that things are not going to improve for quite a while yet. I hope he’s wrong, but in the mean time I am one of those boomers who is cutting spending and trying to save more!.

To read more go to Boomers cutting spending and start saving.

A sobering report in the Sydney Morning Herald about the fortunes of Baby Boomers compared to the other generations.

Things are bad now with superannuation/ retirement funds, but with some expecting a more pronounced and protracted downturn in the months ahead this scenario could be a wake up call to all those about to retire. How best to protect whats left?

Here is an extract from the article;

YOUNG suburban families with mortgages and secure jobs are likely to be better off than they were a year ago, while sharemarket and superannuation losses have destroyed their baby boomer parents’ wealth.

As the Reserve Bank prepares to meet tomorrow to consider interest rates and the Bureau of Statistics prepares its next official jobs report for release on Thursday, economists say the economic downturn is not hitting everyone equally.

An economist at CommSec, Savanth Sebastian, said the impact of the economic slowdown had been hardest on baby boomers and easiest on generation X, provided they had kept their jobs.

“For generation X, I think you’ve already got some of that stimulus package. First-homebuyers are getting the boosted grant. If you’re still holding on to your job, and you’re not paying full price for anything, then you’re coming through this OK.”

Baby boomers, however, were those whose wealth in superannuation was destroyed. And the later generation Y cohort and school leavers faced the toughest jobs outlook as they sought to enter the workforce.

For the full story - Baby Boomers Hardest Hit

These days it can be hard enough just keeping your head above water. What of actually getting ahead financially?

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It seems we baby boomers are getting some deserved recognition in the job market, at least by some retailers. This is great news for baby boomers out there that don’t want to retire and put their feet up. It seems some boomers want to remain an active full or part-time member of the workforce for some time yet.

Here is an extract from pe.com;

Whether it’s a lifestyle choice or because of pressing financial need, experts say the leading edge of the baby boom generation is staying on the job past the traditional retirement age.

Companies are finding that an old-fashioned work ethic is still valuable, and so is a familiar face. Retailers recognize the benefit of a work force whose demographics match those of their shoppers. The result? A work force that increasingly resembles their customers.

This is a great article giving some statistics as well as a personal note. For a complete read click here on baby boomer retirement.