Still working
by February 16, 2011 8:32 am 62 views
A new survey from the American Institute of Certified Public Accountants (AICPA) finds that half of “Baby Boomer clients” have postponed retirement due to the economic downturn and expect to work at least four years longer than originally planned.
The actions come even as the stock market is rebounding and partially replenishing retirement accounts, AICPA noted in its report.
However, 52% of CPA financial planners said their clients – who typically have between $500,000 and $5 million in assets – are at least somewhat confident in the stock market now. That’s a turnaround from a year ago when 54% said their clients were not very confident.
This year is a significant milestone for the Baby Boomer generation, the time when the first of them turn 65 and begin to retire. Baby Boomers, born between 1946 and 1964, number 77 million and represent about 37% of the nation’s total population age 16 or older.
"Boomers have been scarred by the economic turmoil of the past few years and face complex challenges going forward," Clark Blackman II, chair of the AICPA’s Personal Financial Planning Executive Committee. "While more optimistic about the markets, many Boomers remain uncertain about the U.S. economy and their own situations as they contend with job loss – their own and their children’s – lower home values and rising education costs."
The online survey was conducted Jan. 12-Feb. 1, and made available only to members of the AICPA’s Personal Financial Planning practice section. There were 372 responses.
OTHER SURVEY FINDINGS
• 79% of CPA financial planners said they had at least one Boomer client who has delayed retirement because of the economy.
• Asked how many extra years those Boomer clients expect to work, 32.3% of CPA financial planners said 1 to 3 years; 39.3% said 4 to 6 years; 9.8% said 7 to 10 years; and 3.7% said more than 10 years.
• 48% of financial planners said their typical client is somewhat or very pessimistic about the U.S. economy amid gaping budget deficits and high unemployment.
• 51% of financial planners said at least one client was turned down for a mortgage or refinance in the past year. The most common reasons: Lower home values and higher underwriting standards.
• 44% of CPA financial planners said their average client emerged from the recession with increased net worth and 17% saw their net worth stay the same.