Are Baby Boomers Financially Ready To Retire?

Believe or not Madonna actually qualifies to join AARP. Though she is not 65, she is of that wonderful generation dubbed ,"Baby Boomers.'' It is estimated that every month for the next twenty years, another 10,000 Baby Boomers will reach the age of 65. This sudden influx of seniors was deemed by Michael Astrue, the Commissioner of Social Security as "America's silver tsunami." The effects of this tsunami are expected to be quite dramatic on America's economy in the areas of; social security,healthcare, housing, and the workforce for decades to come.

Baby Boomers are the generation of Americans born after the return of young soldiers from World War II. They are distinguished as having been born between January 1st,1944 and December 31st, 1964. On October 15, 2007, While the nation looked on, Kathleen Kirchling, became the first Boomer to apply for social security benefits. Many are now left with the burnign question of where will the money to fund these benefits come from?

The Social Security fund, if untouched, will be depleted by 2041. Every administration since LBJ has spent from the so called ,"lockedbox.to as needed.This means that America may not be able to keep the promise of retirement benefits to this aging generation. This fact could prove devestating for many Boomers.

The reality is that most Baby Boomers have not saved enough or contributed enough into the company pension plans to survive without the assistance of Social Security benefits. In addition many Boomers have also been negatively affected by the mortgage crisis and the devestating drop in the stock market. These facts are making many rethink retirement and remain in the workforce for longer than any other generation in America has been forced to.

Because Boomers tend be healthier than previous generation they are expected to live longer as well. This means that their healthcare cost are expected to be astronomical. It is projected that the number of Americans aged 65 and older, thus, eligible for Medicare, will reach 70 million within this generation. It is also estimated that by age 75 most seniors will be diagnosed with no less than three chronic conditions and rely on approximately five prescription drugs.

Many Baby Boomers have adopted a very effective strategy in dealing with the rising cost of aging, they are relocating. Leaving behind the high cost of living in more expensive states such as California, proves to be one of the most effective ways in which a senior can maintain or improve upon the lifestyle they now enjoy. The benefit of leaving an expensive area means selling a home and paying cash for a new how in a cheaper location and maintaining your savings, social security benefits and nest eggs.

The Most Popular Places For Senior To Relocate

San Jose, Calif. , 55 percent
Austin, Texas, 64 percent
Kansas City, Mo. 67 percent
Salt Lake City, 68 percent
Baltimore, 68 percent
Detroit, 68 percent
San Francisco, 68 percent
Seattle, 70 percent
St. Louis, 71 percent
Chicago, 72 percent

Thousands of Baby Boomers will opt to retire and take advantage of their new found freedom regardless of the financial ramifications. Many others for financial, health, or personal reasons have another philosophy, "Work until I drop!"

No matter what the economy holds this powerful generation of Americans has changed and improved every period of their lives. This is the generation that changed the world and everything they touched, I don't expect retirement to be any different.

US Census Bureau Statistics On Baby Boomers

• In 1957, there were 4,300,000 babies born setting a record for the highest number of births ever recorded.
• In the first year of the Baby Boom, 1946, there were 3,411,000 recorded births.
• The Baby Boom ended in 1964 with 4,027,000 recorded births.
• In 1964, Baby Boomers represented 40 percent of the population. Today, they make up 28 percent of the total population of the United States.
• Of the total population of Baby Boomers, women make up 51 percent.
• A Baby Boomer turns 50 every 8.5 seconds.

Age

• On January 1, 2006, the first Baby Boomer turned 60.
• Women who are currently 50 have a life expectancy of 82.5.
• Men who are currently 50 have a life expectancy of 78.5.
• In 1965, 36 percent of the population of the United States was under the age of 18. Currently, only 18 percent of the population is under the age of 18.

Finances and Income

• Baby Boomers hold $13 trillion in assets, which is 50 percent of United States's asset base.
• Work earnings - 71.4 percent
• Social Security income - 10.4 percent
• Retirement income - 11.3 percent
• Food Stamps - 6.9 percent

Housing

• Own their own homes - 67.6 percent
• Rent - 25 percent
• Have different arrangements - 8 percent
• Would buy a home in an active adult community that is age qualified - 26 percent
• Would not consider buying a house in an active adult community that is age qualified - 24 percent
• Undecided if they would buy a house in an active adult community that is age qualified - 51 percent

Retirement

• Think they will not have enough money to retire - 25 percent
• Have enough money to retire and live comfortably - 36 percent
• Not sure if they will have enough money to retire and live comfortably - 40 percent
• Looking forward to retirement to be free - 74 percent
• Want to retire to a home that requires little maintenance - 62 percent
• Want a smaller home when they retire - 23 percent
• When they retire, 55 percent of Baby Boomers plan to move
• When they become empty nesters, 36 percent plan to move

Health

• 50 percent of all visits to doctors in 2001 were made by Baby Boomers.
• In 2001, 27 million doctor visits made by Baby Boomers were for diabetes.
• 42 percent shop online for vitamins and natural food.

Online Activity

• Many Baby Boomers spend several hours online daily.
• 16.5 million seniors engage in social networking including Facebook, Twitter and My Space.
• Baby Boomers on My Space average 204 minutes a month.
• Out of 130 million members on MySpace, Baby Boomers account for 6.9 million

Senior Resources

Area Agency on Aging of The Capital Area www.aaacap.org

National Association of Move Managers www.nasmm.com

Senior Community Services www.srcommunityservices.com

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