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Baby Boomers
From 1946 to 1964, there were approximately 76 million U.S. births. By 2031, the last of this generation, the baby boomers, will reach retirement age. Baby boomers make up about 21% of the U.S. population, and they're working and living longer than any previous generation.
"Retirement at 65 is ridiculous. When I was 65 I still had pimples."
-George Burns (1896-1996)
Although George Burns wasn't a baby boomer, his sentiments have been echoed by the baby boomer generation, which is changing the face of retirement.
Ageing Workforce
After a slight decline during the height of the COVID-19 pandemic, life expectancy in the United States is on the rise again.
However, the birth rate in the United States is declining and this, coupled with the rising life expectancy, is resulting in an ageing population with the median age expected to continue increasing in the coming years. One consequence of these demographic trends for employers is a shortage of workers. It may behoove organizations to provide incentives to keep retirement age employees on the job.
Yesterday
Life used to be relatively clear cut:
| Youth | Education |
|---|---|
| Middle age | Employment |
| Old age | Retirement |
Today and Tomorrow
It's not quite so simple anymore. More and more Americans are pursuing all 3 goals (education, employment and leisure) simultaneously throughout their lifetimes:
| Youth | Education, employment and leisure |
|---|---|
| Middle age | Education, employment and leisure |
| Old age | Education, employment and leisure |
Technology
Our technology-based society supports many Baby Boomers’ ideas of non-retirement via remote work. People can have longer careers without being hindered by the body's natural aging process.
However, not everyone will continue to work because they want to. Many people won't have a choice.
Currently, only 57% of baby boomer households have retirement assets.
Memory Jogger
Note: Memory Jogger questions are not scored. They serve only to help you remember some of the course material covered thus far. You must select the correct answer in order to proceed to the next section.
The baby boomers' idea of non-retirement has been supported by our: