Baby Boomers Hit Hardest In the Economic Downturn

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