Baby Boomers And Retirement - The Time Has Come

Coping with the growing numbers of baby boomers and retirement is now one of the world's greatest challenges. Daily we are breaking world first's.

The first time that two generations are retired at the same time. The first time retire means so many different things to different people. The first time country's are going into liquidation (or whatever they call it for country's?). The first time that First World governments are using banana republic economic "recovery" strategies.

Like a tsunami the baby boomers and retirement will have a massive impact on many aspects of daily life and how we view our world. However, unlike a quickly retreating tsunami, these changes and their impact will roll on for at least 18 years!

The stock markets and property markets will be impacted as more and more retirees start having to liquidate their inedible assets. Converting their paper and brick investments into their daily bread.

This impact is often overlooked until we read some eye-opening statistic;

  • That some two-thirds of all people who have ever lived and reached the age of 65, are still alive today.
  • We forget, or never realised, that only 70 years ago the average life expectancy in the western world was less than 65 years.
  • In the United States, baby boomers are responsible for over half of all consumer spending and over 50% of the discretionary spending power rests with them.
  • In 1935 when social security was introduced that at birth most people were not expected to make it to age 65!
  • In America, 20% of the population own 93% of the wealth. The bottom 80% make by on just 7% of the total wealth.

The key to the influence of baby boomers and retirement is just how many of them there are. Without an explosive and sudden baby boom in the next 10 years, by about 2020 33% of the population in the west will be over 55.

Boomers are the largest generation and the richest generation ever. But unfortunately the wealth distribution is very skewed putting great pressures on social welfare and health services.

As they have in the past they will continue to have an impact on many aspects of society. Through political mismanagement and and a lack of foresight many countries are facing a pretty tough future. Through a lack of understanding and a misguided trust in the system many people will be living a retirement very different from their dream.

Up to now many (but not enough!) boomers have been saving for their retirement. Soon they will start converting any remotely risky assets, cutting their spending as they start living off their savings. There will be an excess of baby boomer sellers over buyers which, without external political interference, is likely to keep a long-term lid on prices.

Baby boomers and retirement will have further challenges as elected politicians continue to bumble along taking more and more drastic steps to attract votes and retain their jobs. Driving them to continue to make more and more short term decisions.

Protect yourself from being overcome by this tidal wave by starting to prepare your own retirement defense plan now.

Retirement Planning: Your road map to retirement success.

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