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Finances » Summary

Why It's Important

Financial security in later life is an important personal goal. The economic well-being of older adults has improved over the last century. Various income sources -- Social Security, pension plans, and personal savings and employment earnings -- affect whether an older person will have an economically secure future. With the projected shortfalls in Social Security and Medicare, it is paramount that aging Boomers have a way to fund their retirement and needed medical care. Some of that money will clearly need to come from Boomers’ savings.

 

See Data By: Richmond MSA | Virginia | National

How Richmond Is Doing

The median household in the Richmond MSA in 2007 was $66,590 for Boomers and only $38,068 for seniors 65 and older (U.S. Census Bureau, American Community Survey, 2007)

Households by Household Income: 2007 (U.S. Census Bureau,
American Community Survey, 2007)
  TODAY 45-64 TODAY SENIORS 65+
Richmond MSA Virginia National Richmond MSA Virginia National
Income            
Total households 185,512 1,150,150 43,295,140 83,932 555,333 23,035,592
Less than $10,000 8,493 54,591 2,643,633 8,314 56,385 2,223,031
$10,000 to $14,999 4,485 35,548 1,689,305

7,894

 57,057 2,636,310
$15,000 to $19,999 5,357 34,118 1,608,130 6,428 48,176 2,256,943
$20,000 to $24,999 7,582 39,028 1,822,586 5,830 40,140 2,015,179
$25,000 to $$29.999 6,399 42,485 1,800,704 5,815 36,023 1,705,881
$30,000 to $34,999 8,039 46,321 1,983,994 4,356 31,280 1,502,651
$35,000 to $39,999 7,778 44,185 1,874,764 5,770 28,692 1,298,048
$40,000 to $44,999 8,436 46,216 1,991,705 4,562 27,725 1,166,468
$50,000 to $59,999 17,633 93,660 3,611,732 6,099 36,964 1,614,408
$60,000 to $74,999 22,652 123,086 4,820,884 7,752 43,243 1,715,455
$75,000 to $99,000 26,864 158,350 6,059,602 8,207 48,809 1,622,526
$100,000 to $124,000 18,944 116,420 4,141,321 3,630 27,350 859,720
$125,000 to $149,999 13,080 83,911 2,449,899 1,738 15,312 471,605
$150,000 to $199,999 12,297 93,045 2,470,231 1,817 16,865 446,781
$200,000 or more 10,357 98,885 2,514,775 2,103 16,162 509,637
Median household income ($) $66,590 $71,846 $61,962 $38,068 $36,561 $32,158

How Virginia Is Doing

  • Only 46 percent of Boomers say they have money saved to pay for future care (ODP RESIDENT, 2009)
  • When asked what advice they would give to themselves at 20 years younger, two-thirds of Boomers mentioned something to do with money (ODP RESIDENT, 2009)
  • Nearly half of Boomers would have saved more (ODP RESIDENT, 2009)


Boomer Advise

 

  • 85 percent of employers say they offer health insurance (ODP BUSINESS LEADER, 2008)
  • 31 percent say they offer long-term care insurance (ODP BUSINESS LEADER, 2008)
  • 28 percent of Boomers in Virginia say they have long-term care insurance (ODP RESIDENT, 2008)

Benefits Offered by Employers Include Health and LTCI


How the U.S. Is Doing

According to the Bell Investment Advisor’s third annual National Survey on Affluent Boomers on financial stress:

  • Almost 30 percent of affluent boomers have more financial stress now than they did six months ago
  • Affluent female boomers report considerably more stress than men (35% vs. 24%)
  • Affluent boomers on both coasts--in the Northeast (36%) and West (34%) -- report more stress than those in the Midwest (27%) and South (25%)

The study also indicates changes in spending for this cohort:

  • Of the 40 percent of boomers who are reducing spending in response to the economy, the highest proportions are in the Northeast (50%) and the West (46%), compared with 38 percent in the Midwest and 33 percent in the South.
  • Based on the survey, 47 percent of affluent boomer women are making lifestyle changes, compared with just one-third of men.
  • Only four percent of the affluent boomers surveyed report having downsized housing in response to changes in the economy.
    (BELL INVESTMENT ADVISORS, AFFLUENT BOOMERS, 2007)

Differences are modest but the oldest group spends a higher percent on health care and housing.

The percentages of persons 65 and over who are below poverty have decreased from about 40 percent in 1959 to about 9 percent in 2006. In recent years, this percentage has been around 10 percent.

Poverty rate of the population by age group, 1959-2006

 

According to a paper by AARP’s Focalyst entitled, Busting Boomer Myths How Well Do You Know Boomers? Counting Down the Top 10 Boomer Myths boomers aren't all wealthy. Boomers are the wealthiest generation in history, but only 9 percent are truly affluent (defined as having pre-tax incomes of $150,000 or more if working, or $100,000 or more if retired.) In fact, 25 percent do not have any savings or investments at all.

(AARP, FOCALYST, 2008)

 

Data & Information Sources

AARP, Focalyst, Busting Boomer Myths How Well Do You Know Boomers, 2008
https://www.focalyst.com/Sites/Focalyst/Media/Pdfs/en/CurrentResearchReports/707070D2.pdf

Bell Investment Advisor’s Inc., Survey on Affluent Boomers, 2007

http://www.bellinvest.com/survey_2008.html

Federal Interagency Forum on Aging Related Statistics
http://www.agingstats.gov/agingstatsdotnet/main_site/default.aspx

ODP, Residents’ Study & Business Leaders’ Study, 2009

http://www.olderdominion.org/documents/ODP_Exec_Sum_03_26-08.pdf

U.S. Census Bureau, American Community Survey

http://www.census.gov/acs/www/

U.S. Social Security Administration, Office of Retirement and Disability Policy, OASDI Beneficiaries by State and County, 2007 http://www.ssa.gov/policy/docs/statcomps/oasdi_sc/2007/va.html