Most “Baby Boomers” have worked many long shifts and unpleasant jobs, knowing that they’ll eventually get to that glorious time of “retirement” where they’ll sip margaritas and watch dolphins play in the ocean.
But problems began for many with the 2008 market crash. The savings baby boomers had were in stocks via retirement funds saved over forty years. These were cut in half. Most, of course, never saved at all.
The average age of retirement is getting older, from the mid sixties, to an average of about 71 as Boomers work longer.
Most baby boomers had some retirement savings, but also expected to retire partially on their social security checks. Unfortunately, when social security was first put into place, the average life expectancy was much lower. Medical advancements mean people are living longer without an adequate increase in social security.
The amount of money in the social security program is also running out. While there used to be about 42 workers paying into social security for every beneficiary, now there are about 2-3 workers for each person in retirement. And despite getting out more than they put in, the checks for many are not enough to live on.
Get a Job Slacker
This means that many baby boomers have to get a job during “retirement.” This is where the fight with millennials really comes into play. Many employers choose to hire someone younger with more current skills, than someone who worked at the same job for thirty years. Statistics show that people over 55 have a much harder time being hired than those younger, despite laws against age discrimination.
Millennials cause another problem by not saving the way they should. Despite an upturn in the economy for the past five years, many are heavily in debt from student loans and some have negative savings, where they owe more than they actually have. Most are not literate in financial security and can’t answer simple questions about their own personal finances. Many are supported by parents or grandparents, the very people who already don’t have enough for their own retirement.
You need to make sure you’re aware of this trend. Make sure your kids and grandkids have basic financial literacy.
Make sure you do.
Make sure you know what funds you have for retirement and how you can best invest them. Make sure you can watch those dolphins play instead of flipping burgers while holding onto a cane.
Make sure your future is secure.
To read more about why so many have delayed retirement, read the Investopedia article.