A report from Mintel released Tuesday found boomers between 45 and 54 will take longer to recover from the recession. This seems to conflict with a report from Cogent Research, also released Tuesday, which found younger boomers' assets rose 10% from 2006 to 2010.
Almost half of younger boomers (47%) said they have been limiting their spending to necessities for the past year, compared with 33% of survey respondents overall. Fifty-one percent say they will "permanently decrease" the amount of unnecessary purchases they make in the future, compared with 44% overall. Of the younger boomers surveyed, 39% said they worry more about retirement than they ever have before.
“This last recession has definitely not treated everyone equally,” Susan Menke, vice president and behavioral economist at Mintel, said in a press release. “One reason could be that the younger Boomers are the age group that was just getting started when the severe double dip recessions of the 1980s hit, and they have never fully recovered. Another reason may be that this is the ‘sandwich’ generation, burdened with educational expenses for their kids and, for some, health care costs for aging parents.”
Non-Boomer investors however indicated they were ready to be more proactive in saving for the future. Forty-four percent of survey respondents between 18 and 24, and 34% of respondents between 35 and 44 said they will "permanently increase" the amount of money they save. Almost 10% of respondents between 18 and 44 have already started saving more.
“We continue to see numbers indicating that the recession was a wake-up call across age groups, just in different ways,” Menke added. “Everyone is more concerned about having adequate funds to retire after this recession. Unlike the Baby Boomers, however, younger age groups are able to do something about it, which offers a potential opportunity for financial services firms.”