Boomer retirement is regarded as different from the retirement of previous generations. Why is that?
On June 15, 2012 U.S. News reported "For the next 20 years, about 10,000 baby boomers will turn 65 each day". That's a staggering number any which way you look at it!
Furthermore, according to some surveys two thirds of Americans are not saving enough and one half are not saving anything at all. It would thus be naïve to assume that the boomer generation made adequate financial provision for retirement.
From my personal experience I know that even mundane tasks would increasingly need assistance from a younger person as you grow older. I found that changing certain light bulbs is already beyond my capability!
Putting all the pieces together it looks like we can expect growing demand for services, outstripping supply and thus getting more and more expensive. The boomer generation moved to the suburbs and will probably stay on in the suburbs. This fact would increase the cost of providing services and care even further.
Very few retirement planning scenarios took these possible escalating costs into account. At age 69 I find that costs are already higher than I anticipated – even after adjusting for inflation.
However, the boomer generation made waves throughout their lives! I think they'll fare much better than most commentators predict. I think many more boomers will choose to keep on working and earning money beyond age 65 than previous generations.
Typically baby boomers have been health conscious and they'll continue working out for their good health. That should dampen the pressure for health care and thus hopefully retard the escalating cost for medical care.
In 2012 we've seen a glimmer of hope for our retirement portfolios with the markets stabilizing and earnings improving. By postponing retirement for a while, boomers can still recover from the devastating effect of the recent depression on retirement portfolios.
I will be watching the effects of boomer retirement with interest!
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