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.

      • Huschke@lemmy.world
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        10 months ago

        While my boomer parents have obviously participated in the system and profited from it, they have never voted for a party that lead us down this path. Are they also to blame?

      • GBU_28@lemm.ee
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        10 months ago

        Ok so, meeting quite a few rude indians, over a time period is enough to write off like, a billion+ people?

        The point is you aren’t capable of accounting anecdotal consensus for large populations, even if you think you’ve anecdotally met a lot of em

        • VelvetStorm@lemmy.world
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          10 months ago

          Bud what is your deal with trying to make it seem like people are racist against Indians specifically?

          • GBU_28@lemm.ee
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            10 months ago

            I’m not the other comment, I’m just extending the example.

            It’s basic critical thinking to take one situation and compare it to another.

            It could be any very large group, indians are a group of 1.4 billion and I found it applicable to extend the example. The point is anecdotal observation cannot ever form accurate assumption for a large group.

            Same goes for boomers.