Boomer Trouble

Yes, I know Autumn was over and done with many moons ago, but this photo represents what I was reading about the other day. The red tree is a Baby Boomer (a.k.a. aging parent) living among a younger and more energetic generation. We have all heard about the plight of many young people and young couples these days who get themselves into debt problems, then lose a job, and consequently move back home to live with their parents. Apparently, we ain't seen nothin' yet.

This from Thursday's Wall Street Journal:

More aging Americans are doing something they never would have imagined: turning to family for financial aid. Some are even asking their children for a place to live.

The problem has been building as more Americans 55 and older have lost jobs or run through savings faster than expected.

Thirty-nine percent of adults with parents 65 and older reported giving parents financial aid in the past year, according to a September Pew Research Center survey. Some parents may have trouble acknowledging it: 10% of parents 65 and older reported receiving aid.

So let me get this straight. The 'Boomers' who are doing well are supporting their kids, and the kids who are doing well, are supporting their 'Boomer' parents. It would follow that not that many people, over all, are doing well.

The 'Boomers' were doing OK until the credit bubble of 2008 when they took a hit on their retirement nest eggs invested in the markets. Since then they are still way down. It will not get any better because their old age security can no longer be regarded as 'safe' because it is the government who backs the pensions, and we all know they are in such a deep borrowing hole that there is no turning back.

Just thought I would give you a 'heads up' so you can clear out your basement and start building that suite down there.

Yes, those are American figures, but what goes around, comes around.