The generation born between 1946 and 1964 is considered to be the generation of Baby Boomers. They are the offspring of the Greatest Generation, that is, the generation that has lived through the Great Depression and the Second World War. Sadly, the generation of baby boomers has not learned its lessons from the Greatest Generation and is now struggling in its post retirement age.
The Greatest Generation had learnt much about savings and sacrifices due to their struggles during the hard economic times. Historically, it has been seen that great fortunes have been acquired in such times of economic hardships. The baby boomers have failed to capitalize on and put into practice such lessons learnt by their previous generation during times of economic crisis.
v 59% of baby boomers now have to completely or significantly depend on social security for their earnings post retirement. In 2014, the figure was only 43%. The Social Security program may not last for long. In the next few years, real benefit income may drop by a maximum of 20%.
v 45% of the baby boomer generation is about to retire and does not have any savings at all. The numbers have increased by 20% since 2014.
v More than 30% of the baby boomers have to work past their retirement age. 20% of them believe that they will have to work till 70 years of age to support themselves in the future. Only 5 years ago a mere 17% had thought of working till their 70s.
v About 30% from the baby boomer generation are unable to add to their post retirement funds. 16% of this generation have already dipped into their retirement funds and have thus depleted it. Compared to this, just a couple of years ago, around 80% of the baby boomers were able to consistently contribute to their retirement funds.
v Recent reports have revealed that about 44% of the baby boomers have undertaken considerable debts even before they have reached their age of retirement. Among the members of the Greatest Generation only 30% of the retired people were burdened with debt loads.
The grandparents of the present generation could rely on pensions to sustain themselves post retirement. So a piece of advice to the present generation – learn from the mistakes of the Baby Boomers and plan a secure future for yourself and the next generation.