People about to retire have been absolutely decimated by the credit crisis. They have been hit on every front imaginable. Let’s take a look at the typical portfolio of a retiree. First of all, their the largest asset is probably their house. In sterling terms, house prices are down almost 20% from their peak. When measured other currencies, the picture is much worse. Measured in gold, euros and US dollars, UK property prices are down 65%, 30% and 50% respectively. This is having a terrible impact on the baby boomers who have mortgages although most are mortgage free. However, their inheritance has been decimated at exactly the same time as their children could use a financial boost.
