As President Obama and his administration have taken office, they are faced with the worst financial crisis since the Great Depression. Some economists think that the planned stimulus package to revive the economy is a risky decision since we are already in debt by $52 trillion from other government programs currently in place with escalating entitlement costs. What effect will this package have on our country and our industry if we do not experience an economic rebound?
The past year has been one of troubling financial news for all, especially as many boomers approach traditional retirement age with less savings than before. The downturn in the markets has had a devastating effect on the funding of defined benefit pension plans and retirement plans, causing large decreases in many of our savings.
While we all hope the markets will recover soon, the reality of the situation is that no one can be quite sure when that will happen. In the meantime, it is necessary for everyone, including the government, to live within their means. Boomers must also be prepared to work past traditional retirement age to better prepare for the 20 to 30 years they will spend in retirement.