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Baby Boomers

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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 of this generation are just approaching retirement age.

One of the biggest concerns regarding retiring Boomers is how the economy will react. Because the basic systems of American healthcare and social security are flawed, it is incredibly difficult to predict what will happen in the future (Colliver, Compton, & Conden, 2006). Many experts claim that aging Americans will rely solely on social security for income because they did not plan well enough for their retirement (Frey, 2000). The problem with this is that Boomers did not breed heaps of children who entered the workforce to support them once they reach retirement age and begin drawing government benefits. Because of this, many retired Boomers may fall below poverty levels in their older years. Federal spending on social security and Medicare will increase substantially over the next thirty years, and these burdens will have to be take on by Boomers’ children and grandchildren (Abel, 2001).

Looking at this situation from a personal perspective—a Boomer’s perspective—there are plenty of reasons to fear retirement. For example, they will more than likely be living in poverty, will not have access to affordable healthcare, and will not experience their ‘golden years’ of retirement as they dreamed. Even Boomers who planned well for retirement will be negatively affected if the stock market, as a whole, experiences a negative impact. It is predicted that Boomers will begin cashing out stocks when they reach 65 years; it is unlikely that they will take all their money at once from the market, but they will undoubtedly take a large sum (Frey, 2000). Another real concern for Boomers is the availability of social security funds. Many Boomers are concerned over statements released from the U.S. government claiming that when it was initiated, the social security trust fund had a surplus because there were 3.3 younger workers funding social security for every beneficiary (Frey, 2000). In 2008, 78 million Boomers began drawing from the fund and people quickly realized that over the next 30 years (by the year 2040) the social security fund will be depleted and retirees will not receive benefits (Colliver, Compton, & Conden, 2006). From a Boomer’s perspective, as well as from a younger worker’s prospective, the future of the economy and retirement plans looks grim at best.

References
Abel, A. B. (2001). Will bequests attenuate the predicted meltdown in stock prices when baby boomers retire? The National Bureau of Economic Research 8131.
Colliver, J. D., Compton, W. M. & Conden T. (2006). Projecting Drug Use Among Aging Baby Boomers in 2020. Annals of Epidemiology 16(4). doi: doi:10.1016/j.annepidem.2005.08.003 |
Dohm, A. (2000). Gauging the labor force effects of retiring baby-boomers. Monthly Labor Review 17.
Frey, W. H. (2000). America's demography in the new century: Aging baby boomers and new immigrants as major players (Abstract). doi: 10.1.1.34.9849

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