Summary: As a group, baby boomers were the wealthiest, most active, and most physically fit generation up to that time, and among the first to grow up genuinely expecting the world to improve with time. They were also the generation that received peak levels of income, therefore they could reap the benefits of abundant levels of food, and apparel. However, with an increase in “consumerism”, comes an increase in the risk of not having enough for retirement. To help with your retirement planning, I have created a short list of areas you may want to take into account.
6 Threats to Baby Boomers Retiring:
1. Baby Boomers Should Expect a Much Longer Retirement: The parents of baby boomers worked as long as they could and very few were fortunate enough to have a retirement that would be considered “golden” by today’s standards. How many spent the last third (or more) of their lives pursuing hobbies and leisure instead of working? Baby boomers retiring in their 60s can expect to live about 30 years in retirement, which is a lot longer than their parents did.
2. Higher Expectations: Not considering tours of duty in Europe or the Pacific, how much traveling did past generations of retirees do? Boomers’ parents were Depression-era babies who practiced frugality and continued to pinch pennies throughout retirement. In stark contrast, baby boomers want their retirement to include travel, vacation homes, new cars, dining out, etc. This is fine, but it is expensive. Therefore, baby boomers retiring need to plan for a much more expensive retirement than their parents ever would have expected.