Seniors Face Uncertain Future

Facing an uncertain future
Date	March 24, 2010
Section(s)	Generations
Byline	By LINDSEY ADKISON The Brunswick News
Like millions of others (or about 25 percent of the nation's population), she is in foreign territory. "My parents never worried that Medicare or Social Security would not be there for them when they reached the age of 65 and older. That's all I think about," she said. Davis is also concerned about her children and grandchildren. "My father always said that each generation would see a brighter future than the one before. Today that is not true. I worry terribly for my children and grandchildren. The debts that have been placed on them by our government are enormous," Davis said. There is also the trouble of retirement funds for the boomers themselves. Many of those persons born between 1946 and 1964 are hoping to exit the work force in the near future. But a recession-sparked volatile economy has left Davis questioning whether she and her peers will be able to retire. "There is little return on the money that we saved for our future and the future of our children. Instead of being able to enjoy retirement and the remaining years of our life, we will be living frugally to make sure we will not become a burden on our children. Right now, it looks as if our children's generation will be swapping diapers for Depends. What a legacy," she said. But it is possible to retire in a difficult financial climate. Mike and Joy Elliott have recently done it. Of course, it took a lot of work. "Joy and I planned our retirement and saved before the economy went bad. We were hurt during the initial downturn of the stock market. However, we have recovered as the market has recovered," Mike Eliliott said. "We did not do something stupid like pull all our money out. We had some big losses that will never recover, such as Lehman Brothers. We have worked hard to be debt free." But the Elliots have definitely noticed the effect the economy is having on other baby boomers. "Many will be working much longer, which will continue to hurt younger earners and cause the economy to remain stagnate. Older workers will not be buying goods. They will be eliminating debt. They must recover the value lost in the (stock) market," he said. "They will save whatever is not required for subsistence or debt reduction. If their plan was to have a big house and use real estate appreciation for their savings, they will not retire for many years." Boomers across the nation are doing just that. Ed Van Herik, a spokesperson for the American Association of Retired Persons, said the organization is seeing a large number of boomers holding off on retirement or re-entering the work force. "Retirement investments have suffered heavily, although some have seen it come back. It was a significant amount (of money) that was lost," he said. "All of the elements came together to create a series of situations that caused a number of baby boomers to postpone retirement or rethink what retirement means. "It is not uncommon today to hear people say they'll be working longer or taking a look at other options, like working a part-time job."