A look at financial news.
Twenty percent of those 45 and older in the U.S. are having problems paying for essential items like food and utilities, according to a June 2010 survey released by Closer Look, an AARP-commissioned nationwide survey program. The money issues may stem from the fact that 20 percent of those people have taken a pay cut or are working shorter hours, and 28 percent have had to stop contributing to their retirement savings.
Hispanic boomers hit hardest
A 2010 study by AARP finds that Hispanic baby boomers have been hit hardest by the recession. Sixty percent are sleeping less because of stress, 43 percent have problems paying for food and 35 percent have cut back on their medications because of financial reasons. The researchers believe Hispanic boomers are having a hard time because many provide significant support for their children and their parents, leaving little money left for themselves.
Consumer financial protection
Nearly all baby boomers support the need for consumer financial protections, according to a recent survey by AARP. A whopping 96 percent of respondents favor requiring banks to explain the terms and conditions of loans — including mortgages and credit card debt. They also favor requiring companies that manage 401(k) retirement plans to explain the fees they charge.
The recession wasn’t so hard on retirees, according to a new study by the Pew Research Center. Seventy percent of retirees and older adults held their own during the recession, while an equally lopsided majority of twentysomethings did not. The retirees faired even better if they were Easterners. And suburban and rural retirees and older adults experienced fewer problems than the city-dwelling boomers.
Executive boomers optimistic
It’s been two years since the collapse of Lehman Brothers, and 51 percent of executives say the world economy is in recovery, according to a September 2010 survey by McKinsey Quarterly, online journal of business management strategy. They say the economy is doing so well that most expect corporate profits to rise this year, and 38 percent say they’ll be hiring by the end of the year.
Poverty rate rising
The nation’s official poverty rate last year — the latest recorded — was 14 percent, up 1 percent from 2008, according to the U.S. Census Bureau. There were 43.6 million people in poverty last year. Adding to the strain was the number of people without health insurance coverage, which rose from 46 million in 2008 to 51 million last year.