Power Boomers Fear Health Care Costs

A “power boomer” is a person between the ages of 40 and 60 with more than $2 million in investable assets.

According to Rebecca Knight. Medical cost fears weigh on ‘Power Boomers’, Financial Times, March 27, 2007:

more than 43 per cent * * * spend at least three to eight hours a month planning for retirement.

Their planning encompasses researching funds on the internet, and reading personal finance books. By comparison, only 28 per cent of those aged 40-60 with $1m-$2m in assets spend more than three hours planning for retirement.

“The [affluent Power Boomers] spend more time and energy thinking about these issues and it is paying off,” said Laura Varas, a research partner at FRC who wrote the report. “About 63 per cent of them say they have little or noanxiety about paying for their retirement.”

This group is not entirely free of anxiety, however. About 26 per cent of respondents said they were worried that a costly and unexpected medical issue could have an impact on their standard of living.

Special thanks to Prof. Joel C. Dobris of the University of California-Davis for bringing this article to my attention.