Numbers of Baby Boomers Retiring
What About the Great Number of Baby Boomers Retiring
Your college days mark a turning point in your life. By this time, you’ve finally realized the value of getting a degree in order to land a good job. And after establishing your career, you will have to work around eight hours a day for many years. As an individual, you’re not only earning money for your family, but you’re also helping the economy of the country that you live in.
World War II Ends
After World War II, the population continued to increase for nearly twenty years. The babies born during this time were called baby boomers. Millions of babies were born, and at present, some of them are already in their senior years while the rest are in their middle ages.
With so many boomers retiring, can the economy withstand the effects of this situation? In the US alone, they are already preparing for this scenario. Their priorities were attuned to the economy’s needs as many boomers retire. This included certain areas such as transportation, health care, and housing.
Effects of Baby Boomers Retiring
Now that baby boomers are retiring, the need for health-care workers is in great demand. But it is also expected that the US will be in short supply of geriatricians and nurses. The entire country must have the capacity to meet this need. Therefore, the authorities are trying to figure out effective ways to attract people in the field of health care and ensure that they will stay longer.
People Use to Retire at 65
Workforce preparation is one of the many priorities of the federal government today.
Not all people retire at the age of 65. Others even retire before they reach that age, while others still have the desire to work longer. But the expected number of baby boomers retiring should not be ignored. Retirement funding is a very important consideration that should not be overlooked.
Life expectancy is not the same many years ago. Now, if a person retires at 65, he/she can expect another 20 years or so of his/her life. If he/she doesn’t have a job, then he/she will greatly depend on his/her pension and family for survival.
Boomers and Social Security
Social Security may experience a big problem when the boomer retirees start collecting.
The Social Security Administration does not encourage baby boomers to retire at 65 or even have an early retirement. Boomers born from 1944 to 1950 should wait until they reach their 66th birthday before they can receive full benefits. The boomers after 1950 can expect incentives if they retire at 70.
Congress has been slowly raising the age to receive full benefits due to the fact that the Social Security Trust Fund is already negative, meaning it is paying out more than it is taking in. It is projected to be depleted by 2037. Also, COLA, the cost of living raises have been up and down in recent years.
Corporate Pensions? Going Away Fast
Corporate pensions are another problem. By now, you are aware that many companies are reneging on plans or are going bankrupt. If the whole system is like this, what can the retirees expect?
The workforce can’t handle this situation if all baby boomers should retire. This will have a huge impact in many fields. Oftentimes, individuals in their senior years still have a lot to contribute to the society. Those who would still like to work as a part-time employee will be encouraged to do so; another offer for boomers is to work on flex-time after they retire. Seniors have a wealth of knowledge and experiences, so if they decide to continue working, they should not be stuck in a work that does not utilize their skills. But they should also be open to new ways or technology. The seniors need be able to learn new ways.
Aging Baby Boomers and Healthcare
But not all seniors are still capable of working. As people age, they often get sick. They suffer from certain illnesses which makes it hard for them to work. These things are barriers that can prevent baby boomers from working.
The federal government can’t do these things alone. The families of baby boomers, their communities, and all the states should all make efforts to have sound and well-funded plans in place.
But most of all, the aging baby boomer should be prepared for this situation. They should not expect other people to care for them, not even their family. Family members can help and provide assistance, but that can lead to burn out and potentially elder abuse. Baby boomers should have a plan, and be ready for aging. Aging is one thing that all people will be going through, so being prepared will ease the burden.
Do you have your Personal Pension in place? With a Fixed Index Annuity, I can show you how to create a guaranteed lifetime income stream which has the upside potential of market participation and no downside risk. I can also show you how we can add riders which can offer some help with Long Term Care Expenses and/or help out should a Terminal or Critical Illness become a health issue for you in the future.
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As an aging boomer, you should not feel down. Who knows, this might be another good start for you to live a meaningful life upon retirement.The effects of baby boomers retiring should be a gift to the next generations for a lifetime of experience, knowledge and wealth creation passed on.
As always, I welcome your comments or questions below. I will respond ASAP.