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.

  • whoisearth@lemmy.ca
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    1 year ago

    I’m 46. When I was in high school we were told “pursue teaching or healthcare because everyone doing it now will be retired”.

    I didn’t pursue either thank god because

    1. They didn’t retire
    2. When they did or openings came up they were replaced by low wage immigrants that were willing to get paid less to do the same job with a worse title.
    • Captain Aggravated@sh.itjust.works
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      1 year ago

      I went into aviation. I’ve heard that “all the pilots that joined the airlines after 'Nam are gonna retire en masse any minute now and we’ll never find enough pilots” lie for 20 years now, and the next mouth I hear that lie come out of is going to rapidly break into small, wet pieces.

    • Cuttlefish1111@lemmy.world
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      1 year ago

      Don’t you need verified degrees and licenses to do those jobs? I would imagine immigrants picking oranges, never seen one bedside at a hospital or in a child’s school.

      • whoisearth@lemmy.ca
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        1 year ago

        Using healthcare in Canada they are often African or Filipino and they aren’t hired as nurses because nurses are expensive. We have all new titles at cheaper wages for them.

    • EssentialCoffee@midwest.social
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      1 year ago

      What teachers do you know aren’t retiring once they qualify for their full pension?

      Most folks in that profession are in the GTFO stage.

      • whoisearth@lemmy.ca
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        1 year ago

        I’m in Canada so it’s a bit different. Teachers are not noping the fuck out here at the same click as the US for a multitude of reasons.