A study from Bankers Life and Casualty Company Center for a Secure Retirement found that the weak economy has hurt many baby boomers' retirement funds and home values, greatly diminishing their retirement confidence. Research showed middle-income boomers have had to adjust their lifestyles and retirement plans in response to the economic meltdown.
Of Americans between the ages of 47 and 65 making $25,000 to $75,000 in annual income, 21 percent have yet to see their retirement accounts recover from the economic downturn, while 16 percent have underwater mortgages, and 19 percent have less than $10,000 in retirement savings.
But boomers are making adjustments to help recoup their losses. The data showed 18 percent of respondents said they are saving more money now than before the economy went bad, and 55 percent are spending less on unnecessary items than before the onset of the recession. Scott Perry, president of Bankers Life and Casualty Company, said boomers must develop a savings plan or contact an advisor to help create a financial plan.
"Strive to pay down debt, take full advantage of your retirement savings opportunities at work and be realistic about the amount of money you need to live the retirement lifestyle you want," Perry said.
Financial Advisor Magazine recently reported there are many options for life insurance for baby boomers looking to protect their loved ones and assets. There is private insurance that offers both term and whole life insurance policies. In addition, many companies are offering life insurance plans as an investment vehicle in an effort to regain the nonqualified deferred compensation plans that were lost to the poor economy and low tax rates.
Either way, having retirement plans fade due to the poor economy is a good reason for baby boomers to invest in protecting their current assets so loved ones do not have to struggle.