The Boomers Retire and Other Trivia

16 years ago

It's finally upon us.

In three more months the first of the baby boom generation will begin taking early retirement (allegedly).

People who know say that financial promises made to this generation of citizens total around seventy trillion dollars.

According to more people that know, that $70T figure just also happens to be the best guess of what the entire country is worth as a whole: every house, building, piece of land, every business, corporation, car, savings account, etc... everything.

Beginning in eight short years, regular tax revenue will have to be used to pay Social Security benefits instead of the other way around, as it is now. (where SS dollars get spent on other things)

Should be interesting. Ain't gonna happen. (for long) LOL.

Somehow, I don't think people will be retiring as planned.

People say that China will overtake us in many areas. However, it surprised me to know that China's baby boom parallels our own (they were busy during WWII as well). Exacerbating their problem is their long running population control program, i.e. "one child per couple."

The result is that the average age of their population begins to drop more rapidly than any other nation's beginning seven years from now; surprisingly, their government has also made exorbitant retirement promises that it will not--in all likelihood be able to keep as the population ages too rapidly and their newfound competitiveness takes a hit. My guess? Their government will scrap the retirement promises to maintain their expansion. Historically, they have a--talent--for preserving the system.

Japan? Hopeless on the demographic front. Major changes in store for those folks. I think they're already the oldest population and in actual numerical decline. Could be wrong on that. Nah, it's true.

Vietnam? It seems most everyone there is under 25 and well educated with nowhere to go but up. Should be interesting to watch.

MichaelAT

(who assiduously points out that all of us getting older is no one's fault and not a political statement nor an invitation to discuss politics or start blaming people--that's what mirrors are for :):):()

Comments (6)

michaelalreadytaken
Original Author
16 years ago
"drop" = "rise"

Sorry.

MAT
pete41
16 years ago
If you are going to be retired for 40years [many will] and roughly the same rate of inflation as the past forty years you better have investments that will return $500,000 per annum so you can enjoy a very modest standard of living.So $20 mil would be minimum needed to retire.Wow
Sure glad I am one of those pre-war models.
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michaelalreadytaken
Original Author
16 years ago
You are correct Pete.

Your generation hit the retirement "sweet spot:" the best of all worlds.

Four of my aunts and uncles have died in the past twelve months. Each of them was fortunate to have an "ordinary" career with different companies starting immediately after WWII. Each was blessed with a couple of million in retirement plans acquired simply by going to work for the right company at the right time through the "boom" years.

I tend to believe that the best "retirement plan" available to people my age and younger is to try and maintain one's health as diligently as possible and to begin preparing in other ways, more education, developing different skills, discarding "grandiose" ideas of retirement.

(I need to make some more changes in that arena.)

I have an unpleasant theory on what's going to happen to existing "private" retirement plans when push comes to shove. Can't elaborate.

MichaelAT
paparoseman
16 years ago
Pete you were born before 2003? On my dads side of the family all the males are fairly healthy and then die quickly from a major heart attack. There is none of that staying in a hospital for weeks on life support.

Lance
pagan
16 years ago
like they say, getting old ain't for sissies!

Wonder if that is why I was denied social security disability - got to use the $$ to support all the old farts! Wonder if that also explains the popularity of the lotteries and other state-run gambling programs - it's our only chance for a wonderful retirement!!

Jeff Foxworthy: "You MIGHT be a redneck if winning the lottery is your retirement plan..."
anntn6b
16 years ago
"the popularity of the lotteries and other state-run gambling programs "
DH and I argue about this a lot. I'd rather the state get the money than casinos in other states. And in TN, I maintain that it's the only way that some folks are going to help educate deserving family members....toss the money into the state gambling programs and the payoff is for their bright and oft ignored family to attend state colleges on lottery sponsored scholarships.
Which COULD be interpreted as a tax on the mathematically challenged.

Life doesn't have to be expensive to be good. The bored forty-something who tosses money in shopping sprees, expensive golf courses, etc. is going to have problems for his/her remaining decades as well. And not living within one's means reverberates.