America's wealthiest and hardest-working generation is nearing the end of its work life, with possible major repercussions for our economy. Nearly half of baby boomers are already at retirement age, and by 2030 all will be at least 65 years old. That has some economists warning about a Great Retirement Boom...or as one headline puts it, a "Boomer Retirement Bomb."
This great bomb may end up being more like a firecracker. Sure, boomers are retiring at a steady rate (in fact, Gen Z will outnumber boomers in the workforce starting this year.) But, as financial planner Richard Rosso points out, it's not like boomers are all going to suddenly drop off the face of the Earth. "I think what you're going to find is that many people are going to continue to work," he tells KTRH. "As a matter of fact, the fastest growing quartile of the workforce last year was age 70-plus."
Rosso believes retirement has been redefined over the past few decades, and many older Americans are working longer either by choice, by necessity, or both. "There are a lot of boomers out there who don't have enough to retire," he says. "They're living on social security, and they work part-time jobs to stay busy, but also for the financial benefit."
Whether they retire or not, there is no question boomers will still be a big part of the economy. According to federal data, while those over age 65 make up just 17% of the population, they hold more than half of America's wealth---more than $96 trillion. "Baby boomers, with all the wealth they've amassed in housing and the stock market, they are going to continue to spend money," says Rosso. "So they're going to get out there and spend some of their wealth, and there's a group of them that will have to continue to work."
"So, I think it's going to be more of this slow unwinding of boomers in the workforce, and not this 'bomb' headline that you're seeing."
Photo: Getty Images