Much has been made of Boomers and even Matures working well-past retirement age and potentially denying opportunities to Millennials entering the job market. A new study from the Center for Retirement Research shows that the number of workers staying on after retirement age has steadily increased, whether from necessity or desire, over the last 35 years. However, increased numbers of retirement-age workers corresponds to more opportunities for younger generations, not less. The study shows that when older workers stay on the job, they create more economic growth and consumer demand, which, in turn, create more opportunities for younger workers. “Older… Read More
Categories: Generations, Matures, Recession Economy, WorkMany Boomers who are retiring are choosing not to move away or, if they do, they are choosing non-traditional destinations. Increasingly, Boomer retirees are eschewing traditional Sun Belt retirement destinations like Arizona and Florida in favor of closer-to-home destinations in cooler climates like Maine and Washington state. Places like Camden, Maine and Medford, Oregon are now routinely named on “best places to retire” lists. Fewer Boomers are opting for the traditional golf-centered retirement communities in warm climates. “That’s the old view of retirement,” said David Savageau, author of Retirement Places Rated. “And it’s kind of dying out, the desert Southwest… Read More
Categories: Baby Boomers, Generations, WorkMillennials and Generation X will have to save much more for retirement than their parents’ generations, according to recent surveys of investment advisors. In a 2010 Scottrade survey, most (77%) advisors set the “number” at $2 million or more for Millennials. More recent surveys have set slightly lower targets for these generations, but the goals are still substantially higher than they were for Baby Boomers. Both generations will have to wait until at least age 67 to receive full Social Security, since they were born after 1960. By mid-century, 70 is likely to be the typical retirement age. In more… Read More
Categories: WorkJust when Generation X is reaching its peak career and earning years, they are finding that the Baby Boomers won’t get out of their way. Many Boomers are delaying retirement due to the recession or simply because they prefer to work. In fact, the participation rate in the labor force among those over 55 is as high as it’s ever been. Xers, contrary to their reputation as slackers, are highly educated, career-oriented, and ambitious, but their path to the top is not clear. In a recent survey, 40% of them say they are not satisfied with their career progress and… Read More
Categories: Baby Boomers, WorkAs the leading edge of the Millennial generation dips its toes into investing, they are more leery of the stock market than previous generations. A survey conducted by MFS Investments finds that Millennials are just as likely to keep their investment dollars in cash instruments, like savings accounts and money market funds, as they are to invest in stocks – a more conservative approach than older generations and a more cautious allocation than is normally recommended for young investors. Millennial fears about the stock market stem from the 2008 crash and recession as well as the fact that the market… Read More
Categories: WorkAs Baby Boomers retire and turn to their portfolios to support themselves, the returns on those investments are likely to diminish, Robert Arnott of Research Affiliates, LLC tells the Wall Street Journal. The large number of Boomers retiring at once will glut the market with the stocks and bonds they are trying to sell, reducing value. Meanwhile, the working population will have fewer resources to buy them and less interest in doing so than previous generations. The result: anemic returns. To make matters worse, the high proportion of retired population (once Boomers retire) to working population will increase the cost… Read More
Categories: Baby Boomers, WorkWells Fargo’s 7th annual retirement survey, released this month, shows that an increasing number of Americans are planning to work beyond the traditional retirement age of 65. Three quarters of those surveyed, across all age groups, said they expected to continue to work past 65. Half of those expect to work out of necessity. 25% said they expected to retire at 80. Baby Boomers are the most likely to feel compelled to work. Over half of Boomers expect to keep working into retirement because they have to. Another quarter expects to work past 65 because they want to. In contrast,… Read More
Categories: Baby Boomers, WorkMany Baby Boomers, even wealthy ones, have no intention of leaving an inheritance. Instead, they plan to use their fortunes on themselves. A new study by U.S. Trust shows that less than half of wealthy Boomers surveyed plan to leave an inheritance. About the same number have not even told their children what they are worth. This marks a sharp departure from attitudes among previous generations and comes as a shock to the financial planning industry. The results left the president of U.S. Trust sounding a little like a Millennial: “We were, like, ‘wow,’” said Keith Banks. Some Boomers surveyed… Read More
Categories: Baby Boomers, Work