Many HNW Baby Boomers Reduce Spending to Recoup Losses

The financial crisis destroyed almost a quarter of high-net-worth Baby Boomers’ wealth, according to a recent survey.

From 2007 to 2008, high-net-worth (HNW) Baby Boomers lost 22% of their investable assets, according to the survey by the Corporate Executive Board. (The survey defined HNW Baby Boomers as people born between 1946 and 1965 and having at least $1 million in investable assets.)

In response to significant portfolio losses, close to one-half (48%) of surveyed Boomers reduced spending (more than half, or 51%, did not).

The overwhelming majority of survey respondents reported spending a great deal (48%) or a fair amount (40%) of time thinking about retirement. The majority (74%) also reported that they closely monitor their savings and investments.

In the past 18 months, most HNW Boomers have discussed mamy topics with their adviser, such as investment performance over the period (96%), how to generate sufficient income in retirement (80%), various best- and worst-case financial scenarios (72%), how to best address future life events (70%), and a new or updated financial plan (67%).

The survey, conducted in December 2009, looked at 1,250 Baby Boomers.