Baby Boomers Retiring - How Will It Affect The U.S. Economy

In an investigation conducted to discover how baby boomers expect retirement, here are some of the key findings:

For baby boomers, retirement is an occasion to dedicate themselves to the family and to enjoy their leisure time by pursuing their interests and hobbies. Anyway, they view retirement as a chance to improve their skills and find other career opportunities for their age.

Baby boomers quest for both personal and career fulfillment has becomes a driving force for them when preparing and planning for retirement. They secure social security by accessing health and life plans.

Baby boomers are an optimistic generation with conservative financial hopefulness.

So compared with their parents, baby boomers are far more likely to be continuously working while enjoying their leisure and comparatively the boomers made more money than their parents.

Tracing back to the annals of American history, the US economy has predominantly prospered since the baby boomers matured to enter the labor force. Historically, they are considered to be the prime source of the work force. But now that there is the expected demographic decline of baby boomers, the Unites States Bureau of Labor Statistics expect labor shortages that must be resolved quickly. Otherwise, it will inflict dire consequences to the economy.

However, there are some solutions to address the foreseen labor shortage by targeting the other variables that affect the demographic landscape. Organizations and firms can consider retaining the older workers, correcting the gender imbalance in work designations, outsourcing and hiring immigrants.

Since the baby boomers entered the labor force, the US economy has grown faster than its overall population. And the impending decline in the participation of baby boomers to service, will mean a slower rate of labor force growth as well as impact the economy.

To make up for the threatening flux of baby boomers’ contribution to work force, they should be encouraged to remain in service for a longer span. To encourage the aging baby boomers to stay in the labor force, enterprises and organizations should consider the following:

In the years to come, the minimum age of retirement of the recipients of Social Security pension shall eventually be raised to 70, affecting the baby boomer generation. With this incentive, baby boomers will likely to continue working over the age of 69-70.

Since baby boomers enthusiastically prepare for their retirement, these offers will boost their will to stay in the labor force. The aforementioned suggestions will offer mutual benefits for both the corporations and the baby boomers.

As the company understands the effect of the baby boomers’ retirement, they can thoughtfully prepare the upcoming adversities to the labor rate. These corporations and organizations involving the baby boomers need to start their investigation on how to customize their system to accommodate the aging employees. And they must find alternatives to ride the crest of the demographic wave caused by retiring baby boomers.

And learning the distinctive characteristics and views of the baby boomers towards retirement is a good strategy to learn how to deal with the situation.

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