...Retirement of Baby Boomers How Does It Affect Canadian Economy Table of Contents Introduction 3 1. Labor Market 3 1.1 Employment and unemployment rate 6 1.2 Employment rate and unemployment rate in long run 8 3. The Effects on Government’s Health Care Spending 14 4. Education 16 5. Standard of living 17 5.1 Increase productivity 19 6. Pension Plans 19 Conclusion 20 * Introduction The term baby-boomers refers to everyone who were born during the post-World War II, during the years 1947 to 1968, during which time there was a dramatic increase in the birth rate. It is estimated that 97% of the baby-boomers are still alive, which is about 8.5 million individuals. For a past decades, these baby-boomers have controlled and shaped many aspects of our economy, environment, and culture. But as this aging population is coming close to retirement, it could have serious impact on our society. In the coming years, there will be more retirees than worker, which could pose as a great issue in our economy. This paper will analyze the impact of this phenomenon on Canadian labor market and the level of investment, how this could reshape the government budget, and how it is going to affect the Canadian’s standard of living. 1. Labor Market It is quite clear that the retirement of baby-boomers has a big impact on the labor market. Some describes this as a “ demographic time bomb” for the nation’s labor force. Baby-boomers make up one-third of Canadian...
Words: 3362 - Pages: 14
...impacting millions of people in the domino effect; one economy crashes, then they all do. This is very closely linked to the creation of the baby boomer economy, possibly the most brittle of economies that the world has ever seen. Housing prices are sky rocketing, houses are left empty, yet homeless still exists, and people are evicted everyday from their homes. This is the reality of the baby boomer economy Canada is in now, which is effected economically, socially, and politically to be, historically, one of the hardest times to be alive. The economic changes in the past 40 years have not been for the better, as the previous times had been. The baby boomer generation managed to change the cost of living expontentially, from being able to feed a family of 7 for under five dollars, per meal, in the 60-70s, to not even being able to feed one person for under five dollars a meal in 2015. As a concequence, a lot of millenials have began living at their...
Words: 700 - Pages: 3
...Boomers, or Baby Boomers, are classified by the U.S. Census Bureau as a “special age group” (Colliver, Compton, & Conden, 2006). The most recent data, released in 2006, declared Boomers to be citizens born in the U.S. between the ages of 42 and 60 years old (Colliver, Compton, & Conden, 2006). Boomers are “commonly portrayed as a burden to the nation and a drain on future generations” (Abel, 2001). Many argue that this generation is a national asset that could be engaged to fill the gaps in our society (Abel, 2001). The generations of American adults, called Boomers, will have a dramatic affect on society over the next thirty years. Americans hold a generalized view that retirement age is 65 years; in recent years, we have realized that most people will experience far greater life expectancies than previous generations, which means minimum retirement age must also grow (Dohm, 2000). Since retirement age is increasing, along with the average age of the population, serious concerns arise relating to whether the economy can support this generation of Boomers who are only beginning to draw on social security and pensions (Dohm, 2000). These real concerns affect everyone from the Boomers who face an unstable future to the younger generation who will have to take on the burden of future economic strain in the wake of the Boomers (Dohm, 2000). We can only speculate about what will happen to the economy and to society as Boomers reach retirement age, as many members...
Words: 733 - Pages: 3
...discrimination against any person based on their age; specifically against the elderly. I would like to focus on ageism in corporate America and the effects on Baby Boomers , Generation x, and Generation y. Today ageism is alive and well in corporate America. It seems the older workers or the baby boomers are effected the most. At the other end of the spectrum you have Generation y fresh out of college with no experience effected by the economy. The whole spectrum of ages are greatly effected in todays economy. We are seeing more and more of generation mixing in corporate america. You have the Baby Boomers who have been with a company for twenty plus years who still writes hand written letters sitting next to Generation y ,who are extremly tech savvy and fresh to the company. Then you have Generation x (ages 29- 42) who is familiar with communications, media and digital technologies and are also feeling the affects of ageism in corporate America. Baby Boomers are the fifty year olds and up in corporate America, born usually from 1946- 1964. They are considered the fastest growing group in the workforce today. Lets face it, we are a country obsessed with youth and vitality, how are Baby Boomers who are more wise and experienced going to compete. Ageism is a huge threat for the Baby Boomers today. “According to a survey by...
Words: 1020 - Pages: 5
...acknowledge them and do our best to mitigate the adverse consequences of them. Primarily most of our work force today here in the United States is populated by three generations; the baby boomers, gen-x and the gen-y which is sometimes call the Millennials. Currently we have a very large population of baby boomers at 77.3 million people, followed by a rather small population of gen-x with roughly 49.1 million people and then we have another really big...
Words: 887 - Pages: 4
...Shops Baby Boomers Increased Global Coffee Consumption • • • Strengths High Gross Profit Quality Product Channels of Distribution and Vertical Integration Promotion Employee Training and Benefits S/O Strategies Aim more promotion towards older generations (like the baby boomers) Use the good channels of distribution and inventory control to help expand more globally S/T Strategies Use promotion to advertise more than local coffee shops Use control in manufacturing and distribution to incorporate more products targeted to diverse races Weaknesses Increase in Debt Inconsistent Finances High Price Increased Hours for Employees • • • • • • • • • • • • W/O Strategies Use the current low prime rate to pay off debt • Expand more globally where coffee is demanded in order to level out finances • W/T Strategies Lower prices or offer more deals to maintain market share during a time of high unemployment and the recessed economy • Cut back on the time that employees work in order to avoid lawsuits based off of labor laws • • • • • • Threat Labor Laws High Unemployment Local Business Diversity of Races Recessed Economy • • There are many strategies that Starbucks could implement in order to improve. The first sets of strategies are called S/O strategies. These strategies use strengths to take advantage of opportunities. Starbucks could aim more promotion towards baby boomers...
Words: 1106 - Pages: 5
...Health Spending and its Effects on Future Health Care Managers The United States spends more on healthcare than then any other country in the world. In 2012 the United States spent an average of $8,915 per person on health care, totaling $2.8 trillion. Unfortunately, spending will continue to trend upwards due to a number of key factors. According to Kaiser Health News staff writer, Mary Carey, “national health spending will increase modestly over the next decade as a result of an aging population, a recovering economy, and the health law’s expanded insurance coverage”(Carey, 2014) As baby boomers continue to age and the Affordable Care Act changes the health insurance market, “employment of medical and health services managers is projected to grow 23 percent from 2012 to 2022, much faster than the average for all occupations” (Bureau of Labor Statistics, 2014). This paper will focus on national health spending of the United States and the positive and negative effects it has on future health care managers. The Centers of Medicare and Medicaid Services (CMS) estimates health spending grew in 2013 by 3.6 percent marking the “fifth year of historically low rates of spending growth” (Sisko et al, 2014). However, it is “forecasted to rise to 5.6 percent in 2014 due to the combined effects of the expansion of coverage from the Affordable Care Act, faster economic growth, and growing age of the population” (Sisko et al, 2014). During the next decade economic growth is projected...
Words: 1004 - Pages: 5
...States, while the stock market collapse wiped out many savings. In some cases, individuals reaching the age of retirement cannot even afford to retire. This environment has provided DBS with an opportunity – facilitating the relocation of Baby Boomers reaching the age of retirement to Panama where due to the lower cost of living and free medical services most US citizen can still retire in style at a fraction of the US cost. DBS will target Baby Boomers and use both traditional and innovative approaches (TV advertisement, newspapers, seminars, and Internet technologies such as Facebook and Google (PPC)) to create an awareness and demand for the product. During the first year DBS will undertake a considerable amount of market analysis and testing before launching the services in order to accurately identify the unique characteristics of its target consumers. After the first year of operations, DBS will reach its break-even point and soon after generate initial profits of 60,000.00; these are projected to increase exponentially and continue to grow in as it captures the potential market. 2.0 Situation Analysis: Just as the Baby Boomer generation changed American culture in the post World War 2 era, the first wave of Baby Boomers reaching retirement age is changing how and where Americans spend their post-retirement years. It’s a common misperception that when Americans reach retirement age, they move to warmer, more senior-friendly environments: a 2005...
Words: 8602 - Pages: 35
...Demographic Paper Your name Course # Date Instructor Name The aging population and the Baby Boomers are becoming a dominant demographic in the United States. The Baby Boomer generation is the biggest generation in American history. There are approximately 75 million people in America. The average life span and the age of retirement has increased, the need for medications for a longer period , and chronic illnesses are examples of how the aging population and the Baby Boomer generation will contribute to changes in the health care field. “Future and current demographics play an important role in determining the supply and demand of health care workers” (HRS, p. 3). Projected demographics that will affect health care include the increased life span of the aging population, and geographic location of the population. The rise in the population percentage of the elderly over the next decade will cause a n increase in the demand for more health care workers, and medications. Concerns that the demands for health care professionals will not be met because of the financial stress placed on Medicaid, Medicare, private insurance companies, and the patients out of pocket expenses. Many physicians are in the same demographic as the aging population. These physicians may retire around the same time. The healthcare for the elderly population will increase will less physicians to care for them. Positive changes to the health...
Words: 1241 - Pages: 5
...1. Profile the U.S. Market in terms of “Consumer Trends” and the effects of “Competitive Rivalry in the retail sectors”. Identify the specific and general driving forces behind these trends. Due to the credit-crunch many commentators point out that the global consumer mindset is tuned to recession-spending.The main point is that US consumers who used to be very materialistic,now tend to spend less money on their purchases.And there are some consumer trends that support this issue. “The Lipstick Effect” is the phenomenon of the rise of small self-treating on make-up and gadgets when people forego extravagant purchases such as cars and holidays in times of recession. This tendency is all about consumers' sustained need to enjoy consumption and express their identity despite their pressured lives. Overall, consumers may scale down on purchases and live with delayed gratification by saving and investing more in retraining and putting more energy into getting better value. But the definition of value will be different for different products. For instance, consumers will seek the lowest price for products that serve basic needs such as food, whereas in self-treating and small luxuries, the value of feeling indulged is given precedence. The Lipstick Effect endures. Consumers still appear willing to splurge on prestige items. This has led to a huge wave of websites on how to be frugal but also keep up appearances. . Commentators, journalists and bloggers are certainly signalling...
Words: 3739 - Pages: 15
... 07/15/2013 THE BABY BOOM During the Great Depression the marriage rate fell as uncertainty over economic conditions caused people to postpone decisions that would significantly affect their lives. Birthrates also dropped: pessimism shrouded Americans' expectations of a promising future for themselves and their children. After World War II ended, however, prospects seemed considerably brighter. Young Americans returned home from war in 1945 ready to reap the benefits of victory and a prospering economy. Accordingly, there were almost 2.3 million marriages in 1946, an increase of more than six hundred thousand over the previous year. Many of these newlyweds had children within a year: a record 3.8 million babies were born in 1947. This was the first year of the baby boom, which lasted for most of the 1950s. Between 1948 and 1953 more babies were born than had been over the previous thirty years. In 1954 a record birthrate, a low death rate, and an influx of 144,000 immigrants created the largest one-year population gain in U.S. history. (Thomson Gale) In the United States, the term Baby Boomers commonly applied to people with birth years after World War II and before the Vietnam War. A large part of the cause of the Baby Boom was an after effect of World War II where the bombed out cities and fractured economies increased the needs for goods and services in unprecedented peacetime amounts. America cranked...
Words: 766 - Pages: 4
...comprised of decreasing spending on national defense and an increase on spending of healthcare from 2.9% to 24.9%, also an increase of social security spending from 13.4% to 20.3%. Which is a very large increase in healthcare spending, almost a 100% increase from the year 1960 to 2007; also a very large increase in social security spending. Social security spending is the largest portion of government spending. At the state and local levels most of the spending has remained relatively the same. The only exception is healthcare spending, which has more than doubled from 1960 to 2007. Health spending at state and local levels went from 8.2% to 20.7%. The increases in social security and healthcare costs could be attributed to the aging baby boomer population (approximated at 75 million people). This large portion of the US population has had increasing social security needs and increasing healthcare needs. The decrease in national defense could be attributed to several different things including globalization, diminishing international trade laws, the break up of the Soviet Union and a more efficient/ technologically advanced military. These all may have attributed to the decrease in national defense. There are many more factors that could also attribute to the decrease in national defense spending. 2. Why does redistribution cause efficiency losses? Why might society choose to redistribute resources from one group to another when doing so...
Words: 1612 - Pages: 7
...their life cycle. Researchers have determined that every generation has a specific characteristic that distinguishes it from the other. In short, the overall effect one generation has on the other depends on circumstances that existed during that period. We will examine generations referred to as Baby boomers, Generation X and Millennials and how their history helped to shape the world today. It is clear that these three generations are distinct in terms of their experiences, worldviews and beliefs. However, it is also evident that history shaped the development of each group, allowing the generation that followed to benefit from earlier periods in history, creating pockets of similarities across the decades. Experiences in their lifetimes The Baby Boomer Generation is the name given to persons born between “1947 and 1966” and was seen as the last generation that effected any great changes on American society. This generation was distinguishable by a significant increase in birth rates following World War II and is seen as one of the largest generations in the U.S. Baby Boomers are allied with a dismissal of traditional values. Experiences during this time shaped the Boomers and were contributory to the characteristic of rebellious as they were defined. Some of the memorable events for the Baby Boomers are the Cuban missile...
Words: 2669 - Pages: 11
...of Silents, Baby Boomers, Generation X and Generation Y. It is expected that in the coming decades there will be further changes with emergence of newer generations, and slower removal of older generations from organizations as pension age increases. Understanding differences between the generations, and learning to adapt their management practices is critical to building a successful multigenerational workplace. I would like farther explain each generation’s attributes and their effects on the workforce. Silents are considered among the most loyal workers. They are highly dedicated and the most risk averse. Their values were shaped by the Great Depression, World War II, and the postwar boom years. Silents possess a strong commitment to teamwork and collaboration and have high regard for developing interpersonal communications skills. Silents now consist of the most affluent elderly population in U.S. history due to their willingness to conserve and save after recovering from the financial impact of the postwar era. Baby Boomers, born approximately between 1946 and 1964 were brought up in a healthy post war economy and have seen the world revolving around them as the largest generation of the century. Their lifestyle is to live for work and they often expect the same level of dedication and work ethics from the next generations. They are said to prefer face to face communication, are interactive team players and attain personal fulfilment from work. Baby Boomers are often branded...
Words: 888 - Pages: 4
...Running head: Hershey’s Sweet Mission Hershey’s Sweet Mission Dr. Sue Low Human Resource Management Foundations April 22, 2012 Recommend the redesign of Hershey’s performance management system to appeal to the diverse groups that it employs My recommendations of the redesign of Hersey’s performance management system to appeal to the diverse group that it employs would be to keep their current designed performance management system. Their redesign system tailors to two definite generations, the baby boomers and the younger generation. Hershey has a system in place in which the baby boomers train and mentor the new millennial worker due to, “the baby boomers tend to be concerned in leaving a legacy, making the world better, so they generally are enthusiastic about mentoring their younger colleagues” (Noe, Hollenbeck, Gerhart, Wright, 2011). The baby boomers are role models, coaches, and advocates for Hershey’s. Mentoring gives them chances to develop their abilities, experience, and wisdom both to their own advantage and that of Hersey’s to train the younger generation employed with the company. Hershey has reshaped its performance management system which is more attractive to the younger generations’ excitement for challenge, autonomy, and results, the redesign was a bottom-up effort, in which individuals within the company set goals and track progress on projects. The system measures not only business results but whether they are achieved in accordance the Hershey’s...
Words: 760 - Pages: 4
