Retirement baby boomer style is about a better quality of life than their parents before them; not just in finance but in health and vitality. But, the baby boomer retirement places new pressures on the U.S. economy.
In the next twenty years 77 million baby boomers will be leaving the taxpayer population for retirement. At the same time, fewer people will be entering the work force to replace those leaving. Some public concern is being expressed about the imbalance that will occur as federal payout becomes larger than taxable income.
Japan and Europe are facing similar situations with retiring baby boomers.
The good news is that boomers (in the U.S. anyway) aren’t that old yet, and 8 of 10 plan to keep working in some capacity, according to reports. AARP tells us that people in the age group of 55 to 64, are the people who are most likely to start businesses. Good news.
Boomers choose to retire at all ages. Those who retire wealthy have unlimited choice of what to do with the rest of their lives as long as they remain healthy.
Baby boomers who have pensions and retirement savings tend to retire earlier and most will be able to maintain the style of living. They are free to redefine their lives from the nine to five work world and pursue life long dreams or find new interests to keep them occupied.
About a quarter of the baby boomer population will have to work, at least part time, to supplement Social Security benefits. For whatever reason, this group was not able to save the necessary monies and because of this they may see a decline in their standard of living. Many in this group may choose to remain in traditional work force longer.
Reports tell us that three quarters of baby boomer retirees will maintain their standard of living with the remaining boomers having to supplement income. The variables that can impact retirees is inflation and the high cost of oil, energy, and transportation.