US News & World Report lists three problems hitting boomers hard during the economic downturn and how boomers can cope:
Stock market declines — Retirement accounts have lost $1.6 trillion or 18.3 percent of their value, according to Urban Institute calculations. Individual 401(k) participants’ average losses ranged from 7.2 percent to 11.2 percent in the first nine months of 2008, according to an Employee Benefit Research Institute analysis of 2.2 million participants. How can boomers cope? Pulling money out of the stock market isn’t the answer if you want to have enough cash to finance 30 years of retirement. “The goal should always be to have a balanced portfolio that reflects the time horizon and taste for risk of the household,” Mauricio Soto, a research associate at the Urban Institute tells US News. The Urban Institute found the typical retirement account for a worker age 50 or older has 50 percent of its assets in stocks.