A boomer retirement bomb is about to blow up America's economy - eviltoast

The great baby-boomer retirement wave is upon us. According to Census Bureau data, 44% of boomers are at retirement age and millions more are soon to join them. By 2030, the largest generation to enter retirement will all be older than 65.

The general assumption is that boomers will have a comfortable retirement. Coasting on their accumulated wealth from three decades as America’s dominant economic force, boomers will sail off into their golden years to sip on margaritas on cruises and luxuriate in their well-appointed homes. After all, Federal Reserve data shows that while the 56 million Americans over 65 make up just 17% of the population, they hold more than half of America’s wealth — $96.4 trillion.

But there’s a flaw in the narrative of a sunny boomer retirement: A lot of older Americans are not set up for their later years. Yes, many members of the generation are loaded, but many more are not. Like every age cohort, there’s significant wealth inequality among retirees — and it’s gotten worse in the past decade. Despite holding more than half of the nation’s wealth, many boomers don’t have enough money to cover the costs of long-term care, and 43% of 55- to 64-year-olds had no retirement savings at all in 2022. That year, 30% of people over 65 were economically insecure, meaning they made less than $27,180 for a single person. And since younger boomers are less financially prepared for retirement than their older boomer siblings, the problem is bound to get worse.

As boomers continue to age out of the workforce, it’s going to put strain on the healthcare system, government programs, and the economy. That means more young people are going to be financially responsible for their parents, more government spending will be allocated to older folks, and economic growth could slow.

  • Chuymatt@kbin.social
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    10 months ago

    By a majority, the poorer demographic of boomers voted for them, though. That trend increased as they continued to age.

    If we get their voting records and fund only the ones who voted with any empathy for their fellow humans, maybe we can talk.

    On a tangent: While we are at it, let’s not allow healthcare for the ones that rejected science and vocally supported those who supported violence against healthcare workers. Maybe some consequences for the Me Generation for once?

    • Hacksaw@lemmy.ca
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      10 months ago

      Yup, even if you’re a poor retiring boomer you don’t deserve a social safety net if you spent your whole life committed to destroying it. Conservative boomers who are the large majority of boomers voted in the conservative assholes explicitly to gut the “new deal” that their parents put in place for them. “I got mine” was their motto, well now live in it.

      You should get the retirement you voted for all your life. Show me your blue voting record and you can have a social safety net.