Baby Boomers Retirement - How It Impacts the US Economy

Abhishek Agarwal

 

The term "baby boomer" refers to a person who was born between 1946 and 1964. According to the U. S. census of 2000, there are around 83 million baby boomers. Now, the baby boomers are between the ages of 42 and 60, a fact indicating the exit of baby boomers from America's workforce.

The generation of baby boomers has sprung from a period of economic prosperity and the joy of the post Second World War years. Perhaps due to the times in which they were born, they have not just reshaped the culture of their country, but also redefined themselves.

Baby boomers have attracted a lot of attention due to their distinct features and outlook on life. They belong to an affluent generation that has had a major impact on the U. S. economy.

What Do Baby Boomers Feel about Retirement?

A large number of surveys and studies have been conducted on baby boomers. The following facts were brought to light by a special investigation conducted to determine the baby boomers' views on retirement.

Baby boomers are looking forward to retirement because it will give them an opportunity to focus on family life and pursue their hobbies and interests. For many of them, retirement is a golden opportunity to pursue another career more suitable to their age and taste.

Baby boomers aim at both professional and personal fulfillment, due to which they focus a lot on preparing and planning for their future. Social security means a lot to them because they utilize to the full the benefits of life and health plans.

Baby boomers are optimistic with a conservative outlook on money and financial matters.

Baby boomers became more successful at the finanical level than their parents. Compared to their parents, they are more likely to work even during their leisure days.

Baby Boomer Impact on U. S. Economy

U. S. economy soared when the baby boomers made their entry into the American workforce. They constituted the major source of labor. Their retirement from the workforce will naturally have a major impact on the country's economy.

The United States Bureau of Labor Statistics fortells an acute shortage of labor that has to be given immediate attention. This labor shortage is believed to have an adverse effect on the country's economy.

When baby boomers entered the workforce of American the economy grew at a rate faster than the growth of its population. When the baby boomers retire from the workforce, the growth of American labor force will be much slower, and it will be more difficult to maintain a flourishing economy.

Solutions to America's Labor Problem

The only way for the United States to save its economy is to persuade its current workforce of baby boomers to continue working for a long time. To encourage baby boomers to retire late, companies and organizations can use the following methods:

Raise the retirement age of those who receive social security pension to 67. This will encourage baby boomers to continue working till the age of 66 so that they enjoy the full benefits of their social security pension.

Redefine pension benefits so that people who extend their stay in the workforce will receive more pay. This method will bear more fruit than just raising the age of retirement to 67. It will inspire baby boomers to hold on to their respective positions for longer years.

Baby boomers enjoy preparing for a financially secure retired life. Due to this, the above-mentioned offers will inspire and encourage them to hold their jobs for longer periods of time. Companies as well as baby boomers will enjoy equal benefits if baby boomers extend their stay in the workplace.

Long-term Solutions

Companies are very much aware of the impact caused by retiring baby boomers on the country's economy. They have to prepare solutions to deal with the problems caused by a depleted work force. Organisations and companies that have hired baby boomers must modify their policies to accommodate their senior baby boomer employees. At the same time, they must seek lasting solutions to the problems caused the retirement of senior baby boomers. Learning about the views of baby boomers toward retirement is one of the ways of dealing with the situation.

The only solution to the problem of labor shortage would be the retention of senior workers, correction of gender imbalances at work, hiring of immigrants, and outsourcing work. Several American companies and organizations are planning to do this, and some have already begun to use these solutions.

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Retirement Financial Planning – Baby Boomer Generation Faces Reality

Sacha Tarkovsky

 

As the baby boomers generation comes to retire many are unprepared for what awaits them.

Less state support, soaring medical costs and inadequate savings, means that a huge amount of Americans face a drop in living standards.

If you are at our worried about your retirement and financial planning then this article is for you.

Do you want a fall in living standards?

Longer life spans, combined with rising healthcare costs and declines in pension payouts, are creating a gap between the finance needed to live out your "golden years" and the financial reality of retirement.

You have worked hard your entire life, do you really want a drop in your living standards well?

That's the reality unless you take action.

Improving your standard of living

Here we are going to look at Costa Rica which is becoming a core part of retirement for many baby boomers from the point of investment and also an opportunity to live just three hours away from home, yet with a drop in costs of around 70%!

Allowing you to maintain and even increase their living standards

Let's look at what Costa Rica offers in terms of retirement financial planning from both an investment and living point of view.

Costa Rica Land & Property

Offers investors a low risk high reward investment.

Double digit gains year on year with no serious downside driven by huge US and foreign demand and property prices are up 400% in the last 5 years in good locations

Many investors are doubling their money in a year with the right location.

It's a solid investment and rental income is good.

Financial planning close to retirement means investing with as low a downside risk as possible and if you can get some great capital growth all the better.

Living & Investing in Costa Rica

This option is one more and more Americans are factoring into their financial retirement planning.

Costa Rica is just 3 hours away by direct flight and with the huge US Community already there, you will feel at home.

You can get a fantastic lifestyle and can improve upon the one you have!

Consider these advantages

1. Costa Rica Is inexpensive

Real estate and costs are far cheaper up to 70% cheaper than the US, meaning those social security checks go further.

2. Its easy to get residency

Costa Rica wants Americans to come so it's easy to get residency and there is no tax on social security cheques from abroad.

If you own property or land you get the same rights as Costa Rican residents.

3. Medical care

Is expensive in the US, But in Costa Rica your medical bills fall dramatically and the government run health insurance scheme costs $900 per annum and covers 80% of all costs.

Furthermore, Costa Rica has world class healthcare and facilities so you know you're in safe hands.

4. Its safe and beautiful

It's a safe country with lack of serious crime and the people are friendly.

You get stunning scenery rolling hills towering volcanoes, rainforest, pristine beaches and a huge amount of wildlife

Costa Rica is a slower peaceful environment was people have time to talk and there is no rush hour.

5. Familiar surroundings just 3 hours away

Costa Rica has a large American ex pat community so a lot of the familiar companies and brands are around you and your just 3 hours from the US, so you won't feel lonely or isolated.

Costa Rica Invest or live in paradise

If you simply want to buy property to invest or rent a second holiday home then you have a solid investment that will give you great growth rates with low risk.

This will help you, protect and build your capital

If you want to move to Costa Rica you can reduce your living costs, live in a beautiful country and still be close to home and have your own bit of paradise to live and relax in.

You have worked hard all your life, don't accept a drop in living standards.

Look at what Costa Rica has to offer and you will see why more Americans than ever are coming to Costa Rica.

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