What Happens After Baby Boomers Retire?

‘Baby Boomers’ is a term used to represent people born in America during the Post World War baby boom (between the years 1946 and 1964). The population explosion resulted in the birth of seventy eight million American citizens. These boomers are responsible for the rapid expansion of US economy since the last forty years or so.

The Baby Boomer generation is now in their fifties – sixties, and many of them have attained retirement age. The first set of Baby Boomers, touched the age of sixty years in the year 2006. And now, close to four million baby boomers are set to turn sixty every year, for eighteen years from then (2024).

As the huge demographic group called Baby Boomers reaches retirement, we will find that things have changed drastically. Previous generations had things cosseted in safety, which the Baby boomer generation will not. This necessitates the formation of new strategies in planning for one’s retirement. There are many ways in which things are no longer the same they were.

Longer Life expectancy

Huge strides in terms of lifestyles as well as health have led to greater life expectancy for baby boomers. This will mean that the Baby Boomers who have retired, will live longer as a retire than their counterparts in the previous generations. The cost of living has become considerably higher. Inflation is averaging a steady rise of three per cent per annum as well. All these things do not spell very good news for baby boomers and later generations who are due for retirement.

Change of Lifestyle

The days of a retiree staying at home full time, involved in gardening and playing bridge are now no more. Retirement is seen as more of an opportunity to relax, pursue hobbies, enjoy alternate lifestyles, buy new gadgets and cars, volunteer and go traveling to exotic locations. A fun filled lifestyle is more of the retirement norm now. Changes in post retirement lifestyles are another aspect of the present generation.

Health Care Becoming Expensive

Healthcare has become exceedingly expensive in the recent years. Premiums for medical insurances rise on a steady basis year after year and private insurance is getting even more expensive than before. Many companies nowadays do not offer as much health insurance benefits as they offered before. Earlier, firms provided insurance for both retirees as well as immediate families. Now, retiree health insurance is more often than not, minimized and even neglected altogether by many companies.