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Posts Tagged ‘Baby Boomers’

The Pig in the Python

For years, the Americans born shortly after WWII have been labeled “Baby Boomers”.  Per the U.S. Census, a Baby Boomer is “someone born during the demographic birth boom between 1946 and 1964″.

This demographic comprises nearly eighty million individuals with huge buying power.

A lot of us, especially advertisers, believe this group to be a homogeneous one; however doing that is actually a mistaken approach.  Traditionally the group has been said to be made up of revolutionaries, as shown by the decade of the 60s (e.g., free love, peace-niks and war protesters), but large numbers of members are basically very mainstream in their beliefs and conduct.

People born during this time period are quite different in many respects: many (but not all) have children; some are grandparents and/or “empty-nesters;”  others are single, caring for an aged parent, divorced, gay, or belong to extended or alternate lifestyle families.  Some are still full-time employed, some retired, others addressing heavy consideration to quitting work.

Transformers Change All That They Encounter

There is however, one distinguishing characteristic that has exemplified this class – they’re transformers.  Due to their numbers, and relative wealth, they’ve had a renewing effect upon living conditions and culture in the United States spanning the previous 6 decades.  In fact, author Doug Owram labeled Boomers “a shockwave,” and writer Landon Jones has identified them as “the pig in the python”.

This cohort has revolutionized pretty much everything as they have moved thru their teen years, early maturity, their roles, the economy, etc.  – and there isn’t any reason to believe that they have ended their transformative actions on our society.

I’m expecting that the next sphere to be impacted by this group is retirement.

I recall that as a child, I believed anybody aged fifty, or more, was “old” but now, experts consider 50 to be the start of Early Middle Age, and propose that Old Age doesn’t begin until age seventy five.  Currently, Americans at age 50 will probably live another thirty five years, and thus, be “retired” for 20 years or more – so what are they intending to do with all that time?

During the past, the time of retirement was sometimes relatively short and sweet and characterized by poor healthiness, limited funds, and few opportunitiess; however, for this cluster of nearly eighty million Americans, those inhibitions no longer apply.  In their 30′s, they gloated about “never growing old,” and now, it’s up to them to deliver on that claim.

What are they intending to do with an additional twenty or thirty years of active aging?  Modern diet and health care have greatly extended that period of time when individuals remain healthy and strong (as an example, my mom is in her 90s, resides alone, and still  drives her own automobile).

How Retirement Is Being Changed

Are the “Boomers” going to be content to drag out the rocking chair, kick back on their veranda, and let the world pass them by?  I suspect not!

Generally, individuals of this generation are on the path to self-actualization (as Maslow employed the term):

• Most of them have tons of things they need to do yet in their lives.
• Considering they’ll have 20-30 years of time to fill, they’ll be interested in a wide selection of leisure past-times (e.g, travel, golfing, at-home entertainment).
• As a effect of all this time, they also wish to remain healthy enough to like that time – so they are going to be extremely interested by services and products that will help them keep healthy and robust.
• A lot of them will really “reinvent” their work – beginning that career or position they’ve always fantasized about, but had to put off due to family or other duties.
• A lot of Boomers will begin their own firms, and the web provides them with many opportunities they have never had previously.
• Education, acquiring knowledge and things that may provide them with time freedom will be important for this group of financially comfortable US people.

How will you balance that time across work and play?  Are there goals that you have put off for years but wish to realize throughout your “retirement”?

If you are one of those folks needing to launch your own business, give some thought to starting an affiliate or other internet business – but be advised that the difficulty with most online programs is that their coaching tends to be superficial.  Sadly, you’ll need more training than they routinely offer.  One very good starting point for getting the skills that you will need is to sign up for the Online Success for Beginners class.

Threats to Your Retirement Income

If you’re part of the Baby Boomer Generation, you’re likely giving serious thought to retiring – if you haven’t already retired.  And if you have previously left the 9-5 rat race, you may be wondering when you’re financially able to stay comfortably retired.

Present economic crisis complicates the situation greatly by increasing the following retirement related economic variables:

1. Average Life Expectancy Is Longer

People are living longer than their parents’ generation. For example, in 1970, a 60-year old Caucasian male would have had a life expectancy of only 16.2 years; but, by 2008, his life expectancy had expanded to twenty years.

So how is the senior going be able to afford to pay for those additional 3.8 years? Following are several realistic responses:

> Add to pre-retirement nest egg building

> Work longer than desired

> Live with with family members

> Accept quality of life

2. Spiraling Health Care Costs

Adequately funding one’s health care coverage are some of the most difficult financial planning tasks, largely because requirements are so person-specific, with requirements varying substantially from one person to another. Long-term care requirements are even harder to predict and arrange adequate funding.

Health care expenses have risen faster than 5% (inflation adjusted) for the past 15 years – and that is greater than the growth in family income. Medicare costs will probably rise as well at a comparable rate.

3. Government Actions May Limit Retirement Income & Supplemental Programs

It is well known that the expenses associated with the major social programs (e.g., Social Security, Medicare, and Medicaid) are growing faster than other parts of the economy, and some economists challenge the long-term feasibility of these programs because of the combined effects of increased longevity, size of the Boomer population, and increasing health care costs in general.

Further, current questions concerning ongoing health insurance during retirement, and at what financial levels, are rampant in today’s depressed economy – and these questions are further fueled by auto industry, and other, corporate reorganizations.

There is currently a lot of conversation concerning a national health care system – but such conversations have been active for decades, with few benefits to show for those efforts. Although President Obama will be leading a national health initiative this year, most people expect a lot of opposition from Congress.

Many believe that people over age 55 will be protected from cuts in these social programs, but providing complete coverage for them is a two-edged sword – doing so increases the probability of a new tax, which would likely add to retirement tax burdens.

4. Retirement Dates Are Frequently not Freely Chosen

According to a 2004 Health and Retirement Survey (HRS), 37% of seniors are forced to retire. This can occur due to feeble health or recessions, etc.

5. 401Ks Have Been Decimated

Were your savings (including your 401k) devastated with the stock market crash last year? My investments were deeply affected. Many comedians now refer to 401Ks as 201Ks because of the drop in the stock market. For many people, their 401k was the bulk of their retirement savings, so this stock market meltdown substantially damaged their retirement plans.

Humpty Dumpty Was No Financial Planner

But, the news is not all bad. You can fix a broken “nest egg”.

You can work longer, semi-retire and take a part-time job, work from home, start your own business, etc.

If you’d like to start an online business, but are hesitant because you’re not an internet expert, a very good starting point for obtaining all the knowledge about internet marketing that you will need to be successful is to enroll in the Online Success for Beginners course.

A study by Butrica, Smith and Steuerle (2006) noted that working just one (1) extra year can raise annual retirement income by 9%, while working just five (5) extra years results in an extra 56% annual retirement income.

If you’d like to learn how to produce a supplemental income, so that you can have a rewarding, financially secure retirement, check out Darren Salkeld’s new MaxPro Marketing System and get his FREE Report and FREE Audio describing the age-old secrets of creating wealth.