Boomers Retirement Life The Demographic Shift
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Boomers Retirement Life
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Life Expectancy

The recent huge population explosion and the influx of large numbers of immigrants have changed the way we've come to think about retirement. Many of the safety nets that were in place for previous generations have disappeared as the Boomers have neared retirement. A new income-generating strategy was needed, one that was very different from that of our boomers' parents. In this article, we'll review some of the reasons that retirement planning has shifted focus and discuss at least one possible solution. For more on the changing face of retirement, read the "Generation Gap."

Older Boomers

Improvements in healthcare and lifestyle mean baby boomers who reached 60 in 2007 can expect to live an average of another 22.5 years. In some cases, retirement could last four decades or more. This longer life expectancy means retirement income must last longer than for any previous generation. With the increase in the cost of living, Boomers and those that come after them will likely need to save more than any previous generation to finance retirement. This they are not doing but relying on credit and increasing their borrowing. Compounding this situation is inflation, which has averaged about 3% per year in recent years. In the recession of 2008 and 2009, the inflation rate in both the U.S. and Canada had fallen below 2%. This meant that what you could buy for $100 in 2004 costs $108 in 2007. To keep inflation from whittling away at your savings, read "Curbing The Effects Of Inflation."✞

"Boomers Retirement Life"
by Ron Meacock © 2019

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