Older baby boomers on average have 12% fewer assets than they did four years ago, according to data released Tuesday by Cogent Research.
For the 2011 Investor Brandscape Report, Cogent surveyed 4,000 affluent consumers with at least $100,000 in investable assets. As of October 2010, boomers born between 1946 and 1955 had an average of $708,000 in investable assets. In October 2006, the same group reported have an average $809,000.
Boomers between ages 45 and 54 are in slightly better shape; despite being less affluent overall, average assets increased 10% since 2006.
Moving assets to more conservative investments is one reason for the drop.
“We saw a significant increase among older Boomers last year in allocations to lower risk investments just as the market was rebounding," Cogent Principal John Meunier said in a press release. "Unfortunately, this only served to dampen their ability to regain losses sustained in the downturn.”
Late boomers benefited from more exposure to equities in 2010, according to Cogent, as well as by increased participation in employer-sponsored retirement plans. Eighty-four percent of boomers between ages 45 and 54 invested in their employers' retirement plans in 2010, up from 79% in 2009. In the same period, retirement assets increased from 45% to 50% of total investable assets.