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Boomers head toward poor house

A new report shows just how badly baby boomers have been hurt by the collapse of the housing and stock markets just a few years before they should be retiring.

The Center for Economic and Policy Research recently looked at how much wealth boomers lost from 2004 to 2009.

It found that many baby boomers have little, if any, equity in their homes, thanks to declining home prices (and, we suspect, some disastrous decisions to yank cash from their properties during the housing boom).

Nearly 30% of late boomers — that’s those 45- to 54-year-olds — and 15% of early boomers — the 55- to 64-year olds — now owe more on their homes than they are worth.

Boomer retirement accounts and other investments have been seriously depleted by the bear market that’s driven the major stock indexes down more than 40% from their peak in October 2007.

By the end of the year, the median household in the 45 to 54 age range will have seen its net worth fall by more than 45% since 2004 to just over $80,000. (That’s including home equity.)

Early baby boomers, those closest to retirement, will have lost 38% of their net worth and see their median wealth fall to $140,000.

Comments (2)
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2 Existing Comments
  1. William said:
    on March 21st at 10:38 pm

    The boomers decided to use their wealth to go to war against Iraq.

  2. Merl said:
    on January 9th at 12:34 pm

    The greatest loss of wealth in recent history is due to the policies of progressives of both parties aimed at redistrution; not from any one mishap. When progressives prevail you get: high taxes, high unemployment, low interest rates on savings, a volatile stock market, high interest on loans and credit cards to finance massive bank losses due to banks being forced by progressives to make subprime loans for reasons of political correctness. By contrast, when the economy is run and based on sound economic principles, everyone profits. Progressive and liberal policies promise money to the little guy; however, often lead to riches for a minority of political elites: cronies; lobbyists and corporate fat cats.The answer is to vote for candidates who will advance and abide by conservative–not progressive economic principles. The progressives’ aim is to destroy the free market system that creates the greatest overall prosperity; and install socialism that promises little guys a lot while givining them little, and enriches highrollers and other political fat cats. WIth the wolves of terrorism and gross indebtedness at our collective doors, we need more than ever to abide by sensible and wealth creating principles; because you can bet our enemies are. Indee, our enemies are engaged in profiting from our weaknesses; and it is sad to say that they are winning; because the US has lost respect by surrendering its sensible principles, strength, wisdom and pride by conducting its business so unwisely. Read all you can; watch the news; and stay informed and active. You cannot complain about being taken if you choose to do nothing.