I was reading an article in the paper the other day that got me thinking… yikes… our largest generation is going to be retiring soon. What does this mean and how will it influence all of us? To be honest, I am not sure – but it left me with some questions and thoughts. I would love to hear any ideas you all come up with too! Just leave them in the comment box below.
Baby boomers will need to start using their retirement money. This means large amounts of stocks will be sold. Thus, the process will move money out of the financial markets and back into circulation. While this could certainly cause the stock market to decline, it could have a positive affect as this money starts being spent. Businesses that target retirees and the elderly will benefit the most from this shift.
Jobs that were once held by baby boomers will be left open. Therefore, some younger workers could have the opportunity to move up the ladder. In addition, since the next generation after the baby boomers was much smaller – there could be a real demand for quality workers.
More contractors, freelancers and volunteers will enter the workforce. Active baby boomers might not want just to sit around in retirement. Many of them will continue to keep their minds active through work that allows them flexibility and the ability to choose what they want.
Retires tend to size down their homes. This could cause an influx of family sized, larger homes into the already deflated housing market. It could in turn help the sales of smaller homes and condominiums – which are more likely to attract the simpler lifestyle of retirement.
The government is already aware of the potential tax, revenue and social security implications of this large generational shift. The drain to our country’s finances will potentially hurt all of us as other programs are cut to cover the additional costs of typical elderly concerns such as Medicare and retirement benefits.
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