As we know the baby boomer generation is very large. Our nation will face expenditures in social security & medicare as they roll onto the rolls of this programs.
But there is another problem.
Nearly half of those nearing retirement lack adequate savings - Chicago Tribune
Thus those 47% will likely work as long as possible. Which possibly results in less job openings for the succeeding generations. I say possibly as the baby boomer generation is large so perhaps there will be sufficient job openings. But if not, that creates a big problem for generation X [born 1965-1979] who counting on moving up. Particularly as they have been devastated by the recent recession.
The Great Recession wrecked Generation X- MSN Money
Combine the above with the trend of job automation & Jeremy Grantham's future low 2% GDP growth for decades prediction.
GRANTHAM: Here's Why Economic Growth Is Going To Be Dismal For Decades To Come - Business Insider
Combine with Europe going into recession again & mebbe US as manufacturing drops.
Mish's Global Economic Trend Analysis: IMF Halves Germany 2013 Growth Estimate; Still Too Optimistic
Mish's Global Economic Trend Analysis: Huge Miss in May ISM; Manufacturing Now in Contraction; What the Numbers Mean
Very choppy waters ahead. Times ahead could be just as bad as the stagflation decade [~1973-1983].
Retirement is a recent phenomenon for the masses. Just for the WWII generation & looks like part of the baby boomer generation. Perhaps we are headed back to where a person works til they no longer can work & generational warfare. I dunno. My crystal ball is on the friz.
Well mebbe this post will generate some discussion on the long term macro economic trend/effects on our nation & the world.
Cheers
But there is another problem.
Nearly half of those nearing retirement lack adequate savings - Chicago Tribune
About 47 percent of early baby boomers, now 56 to 62 years old, are not expected to have enough money to cover basic living expenses like food, utilities and health care through retirement.
Thus those 47% will likely work as long as possible. Which possibly results in less job openings for the succeeding generations. I say possibly as the baby boomer generation is large so perhaps there will be sufficient job openings. But if not, that creates a big problem for generation X [born 1965-1979] who counting on moving up. Particularly as they have been devastated by the recent recession.
The Great Recession wrecked Generation X- MSN Money
This is a generation that graduated amid one recession, missed out on the dot-com bubble that preceded it, missed out on the housing boom because it couldn't scrape together enough cash and was plunged headlong into yet another recession, thanks to the housing bust that followed.
Gen X has since watched what little net worth it had plummet from an average of $75,000 in 2007 to just $42,000 in 2010.
That $33,000 loss isn't nearly as much as the nearly $75,000 lost by baby boomers born just after World War II, but at least that group is still sitting on roughly $170,000 apiece, thanks to the cash it made during the dot-com and housing booms. Pew concluded that not only did Gen X lose out during the housing bubble because of its low rate of home ownership but that "Gen Xers are the least financially secure and the most likely to experience downward mobility in retirement.”
Combine the above with the trend of job automation & Jeremy Grantham's future low 2% GDP growth for decades prediction.
GRANTHAM: Here's Why Economic Growth Is Going To Be Dismal For Decades To Come - Business Insider
Combine with Europe going into recession again & mebbe US as manufacturing drops.
Mish's Global Economic Trend Analysis: IMF Halves Germany 2013 Growth Estimate; Still Too Optimistic
Mish's Global Economic Trend Analysis: Huge Miss in May ISM; Manufacturing Now in Contraction; What the Numbers Mean
Very choppy waters ahead. Times ahead could be just as bad as the stagflation decade [~1973-1983].
Retirement is a recent phenomenon for the masses. Just for the WWII generation & looks like part of the baby boomer generation. Perhaps we are headed back to where a person works til they no longer can work & generational warfare. I dunno. My crystal ball is on the friz.
Well mebbe this post will generate some discussion on the long term macro economic trend/effects on our nation & the world.
Cheers