Baby boomers ignore crunch implications
The majority of baby boomers could face a bleak retirement if they fail to adapt to the credit crunch, according to new research by the Hartford.
Two-thirds (65%) of baby boomers, those aged over 45, have not reviewed their pension plan since the credit crunch began, the pensions provider said.
The Hartford found that 42% of over-45s are in ‘credit-crunch denial’, either refusing to change their plans for retirement saving, or believing there is nothing they can do about the economic downturn.
This group are stuck in pre-crunch thinking and behaviour.
A further 23% of baby boomers are ‘crunch drunk’: they understand the implications of the credit crisis, but are confused by a barrage of advice on what they should do to protect their savings for the future.
Just 35% of respondents were found to be ‘crunch conscious’, having taken action to soften the blow of the downturn on their savings for retirement.
Only a tiny minority (7%) of those surveyed have seen a financial adviser in the last six months.
Michael Rudge, Hartford Life’s UK MD, said: “People’s attitudes to retirement planning remain firmly fixed in the pre credit crunch era.
“From an over reliance on property, through to a lack of interest and understanding of pensions right until the last minute, many people have not adapted to the economic realities of 2009.”
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