Baby Boomers Likely to Transform Retirement
Americans born between 1946 and 1955 will transform retirement by forgoing the tradition of a leisure-filled life, according to a report from MetLife. This group of "baby boomers" was among the first for whom a college education was commonplace. Also, they were among the first to have a sense that their lives would be better than their parents. Instead of the traditional retirement plans, their financial obligations will require many boomers to remain in the workforce longer than they had originally planned.
Here are some of the factors that will keep many of the boomer generation in the workforce:
• They have debt from putting their children through college, borrowing against their homes, and in some cases, second home ownership.
• They expect to live longer than previous generations, and they fear outliving their savings.
• Their financial nest eggs have been negatively impacted by low interest rates and poor returns in the stock market.
• Their family finances have been stretched by the fact that 25% of the boomers have adult children still living with them. Also, many boomers are providing for the care of their own parents.
In the past, about three-quarters of men and women would be fully retired within four to five years of their 65th birthday. But by the time the first boomers approach age 70, fewer than half of them will have retired.
The good news for employers is that this group of highly educated individuals is likely to find a welcoming employment market where their experience is valued and where employers recognize that they may not require benefits like health insurance due to their eligibility for Medicare.
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