Consumer Focus: How Will the Economic Crisis Affect Aging Boomers?

Katie Sloan, AAHSA's Consumer Focus Columnist

A few weeks ago, I shared the startling information that baby boomers were turning out to be less healthy than their parents. Now comes the news that boomers also aren’t doing very well economically, in comparison with previous generations.

Today’s seniors are generally better off economically than boomers, according to AARP. The association reports that more 45-to-64-year-olds have difficulty paying medical bills and buying gasoline than those over age 65. As a result, Americans in their middle years are putting off health care, including dental treatments. They’re often not filling prescriptions or they’re stretching those prescriptions by skipping doses and cutting pills. These are trends we’re used to seeing among older people living on fixed incomes, not among boomers who should be enjoying the apex of their careers.

It used to be that seniority at a company translated into job security. But, according to the latest brief from the Center for Retirement Research at Boston College, that’s no longer the case for baby boomers. Even having a college degree – as opposed to a high school diploma – doesn’t insulate workers from job loss in the current economic climate. Once displaced, older workers are less likely to be reemployed, which often wrecks havoc with their retirement incomes and plans.

This disturbing trend is already being borne out by unemployment statistics. Unemployment for middle-aged workers is the highest it’s been since data was first collected 60 years ago. According to the Bureau of Labor Statistics, joblessness among those over 45 is worse for men than for women, but it’s no picnic for either sex. In 2008, laid-off people over 45 were out of work 22.2 weeks, compared to 16.2 weeks for younger workers, according to The New York Times.

On the bright side, boomers are resilient and optimistic. In past years, they have taken charge of their own circumstances no matter what they may have been. The first wave of boomers faced overflowing schools, more competitive college admissions standards and a tight job market. As writer Brent Green observes, “We change with the events in our lives; we evolve as our values become tested by triumph and tragedy.”

Even so, these statistics are a staggering reminder of how fragile our circumstances are and how flexible we need to be with our plans. The statistics also have significant implications for those of us who provide services to people as they age. As we prepare to serve growing numbers of people whose economic security may be at risk, it makes sense to consider offering a variety of payment options and service levels to meet a range of needs.

We can only hope that a steady economic turnaround will reverse the present reality for many boomers. But, in the meantime, what can boomers do to cope with the threat of economic insecurity that we all face? And what can aging services providers do to help this population if the current economic downturn impacts their future well-being?