Recession Destabilizes Boomers’ Finances

Say what? Lost 3% of their wealth eleven years ago? What about the great bull market in the last ten years? Retirement planning at a disadvantage?

Balderdash and poppycock‼️

Yes, if you were very near retirement in 2020 and you lost your job, that’s a setback, maybe. But by then you should have already accumulated your retirement funds and they should be allocated appropriately for someone near retirement- meaning less stock market risk.

Macrotrends.net S&P 500

The greatest disadvantage boomers and others have had when it comes to investing is their own lack of information and planning and making knee jerk changes in investments that lock in losses and miss opportunities.

Baby boomers, their retirement plans having been deeply affected by the Great Recession, are once again reassessing their finances.

One popular article explained that the boomers who were in their early to late 50s during the previous recession lost about 3 percent of their total wealth at the time. This put their retirement planning at a distinct disadvantage compared with earlier generations in their 50s, whose wealth, rather than shrinking, grew 3 percent to 8 percent.

The current recession is the second major setback in just over a decade. Prior to the pandemic, readers liked articles about making careful retirement plans.

Post-pandemic, the most popular article was about laid-off boomers desperate for income who may have to start their Social Security prematurely. The retirement benefits can be claimed as early as age 62, but doing so locks in the smallest possible monthly Social Security check – for life.

Source: Recession Destabilizes Boomers’ Finances | Squared Away Blog

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