A Kinder, Gentler Recession for Seniors?

I'm not sure I agree with this article. many seniors I know were struggling before the financial crisis started and are even worse now. My big concern for seniors is that inflation will take off leaving those on a fixed income vulnerable.-Lou

A Kinder, Gentler Recession for Seniors?

Is the Great Recession bypassing seniors? That's the conclusion drawn by a new study looking at the downturn's impact on different age groups. But I'm not buying it.

The Pew Research Center poll reports that Americans over age 65 are less likely to have been forced to cut their spending by the downturn than middle-aged people. Fewer seniors report sharp declines in retirement portfolios than other age groups and are more likely to express overall satisfaction with their financial situations.

I can't argue with the Pew reports, since the findings simply reflect what people are telling pollsters. But polls only answer the questions that you ask. In this case, the questions generated headlines claiming the recession has been "kinder and gentler" for seniors--and that misses a bigger emerging picture that's much less positive.

No doubt, people on the cusp of retirement are in bad shape. Pew notes that Americans age 50-64 are near their peak earning power and net worth, and will need to tap their retirement funds soon--in many cases, before the market fully bounces back. The poll shows this group has been most likely to lose money in stocks or retirement accounts, and has suffered big losses. They're also the most likely to say they won't have sufficient funds to live on in retirement; nearly half of those who are still working say they're considering delaying retirement.

Meanwhile young adults are least likely to say they've been crushed by the stock market, mainly since they don't have as much money invested. About 70 percent of 18-29 year- olds report that they haven't lost money on investments, and 45 percent of 30-49-year-olds say the same. But they're four times more likely than older people to say they have had trouble securing affordable medical care. And they're far more likely to have experienced a job layoff.


Read More:
http://www.huffingtonpost.com/mark-miller/a-kinder-gentler-recessio_b_210057.html