 
Cecily O'Connor
RedwoodAge.com
While a professional hair cut may have been a luxury for boomers 30 years
ago, many think it now falls under the category of "basic need."
 Internet service is a necessity to most people. In fact, about half of boomers think hair maintenance is as basic a need as
annual family vacations, weekend getaways, having eldercare, and funding
children or grandchildren's education, according to a survey by MainStay
Investments of adults aged 45 to 65.
Those basics are in addition to other necessities like healthcare coverage,
Internet connection, shopping for birthdays, and pet care.
"We have clearly expanded beyond the three traditionally thought-of
necessities – clothes, food and shelter," said Matthew Leung, director
and head of practice management programs at MainStay,
an advisory unit of New York Life Investments.
However, making these needs a reality in the current economy is anything but
easy. About 40 percent of boomers said they expect to delay retirement to afford
the so-called good
life
Need vs. Luxury
About three-quarters of boomers said they are willing to spend less now to
invest for a more comfortable lifestyle in the future. Besides working longer,
they also are adjusting their portfolio allocations and bending the ears of
financial advisors.
When it comes to asset allocation, boomers said they are willing to sacrifice
a portion of their assets if it will help them achieve their retirement goals.
Still, healthcare is the expense that boomers are most concerned about being
able to afford. More than half indicated they would rather work longer to pay
for healthcare expenses, rather than give up luxuries in retirement.
"While a majority of consumers are setting aside funds specifically for
future healthcare costs, a whopping 41 percent are not doing anything specific
to save for healthcare, and will be relying on their retirement assets to cover
healthcare and everything else," Leung said.
When asked which luxuries would be the most difficult to give up, traveling
and dining-out topped the list for both men and women.
|
