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)
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|
TODAY 45-64
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TODAY SENIORS 65+
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Richmond MSA
|
Virginia
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National
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Richmond MSA
|
Virginia
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National
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Income
|
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|
|
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|
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Total households
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185,512
|
1,150,150
|
43,295,140
|
83,932
|
555,333
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23,035,592
|
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Less than $10,000
|
8,493
|
54,591
|
2,643,633
|
8,314
|
56,385
|
2,223,031
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$10,000 to $14,999
|
4,485
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35,548
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1,689,305
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7,894
|
57,057
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2,636,310
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$15,000 to $19,999
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5,357
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34,118
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1,608,130
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6,428
|
48,176
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2,256,943
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$20,000 to $24,999
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7,582
|
39,028
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1,822,586
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5,830
|
40,140
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2,015,179
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$25,000 to $$29.999
|
6,399
|
42,485
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1,800,704
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5,815
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36,023
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1,705,881
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$30,000 to $34,999
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8,039
|
46,321
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1,983,994
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4,356
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31,280
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1,502,651
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$35,000 to $39,999
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7,778
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44,185
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1,874,764
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5,770
|
28,692
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1,298,048
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$40,000 to $44,999
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8,436
|
46,216
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1,991,705
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4,562
|
27,725
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1,166,468
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$50,000 to $59,999
|
17,633
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93,660
|
3,611,732
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6,099
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36,964
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1,614,408
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|
$60,000 to $74,999
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22,652
|
123,086
|
4,820,884
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7,752
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43,243
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1,715,455
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$75,000 to $99,000
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26,864
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158,350
|
6,059,602
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8,207
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48,809
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1,622,526
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$100,000 to $124,000
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18,944
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116,420
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4,141,321
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3,630
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27,350
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859,720
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$125,000 to $149,999
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13,080
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83,911
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2,449,899
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1,738
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15,312
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471,605
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$150,000 to $199,999
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12,297
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93,045
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2,470,231
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1,817
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16,865
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446,781
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$200,000 or more
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10,357
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98,885
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2,514,775
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2,103
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16,162
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509,637
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Median household income ($)
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$66,590
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$71,846
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$61,962
|
$38,068
|
$36,561
|
$32,158
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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)
- 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)
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.
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