Baby Boomers Retirement – How It Impacts the US Economy

February 15th, 2021 by dayat Leave a reply »

The term “baby boomer” refers to a person who was born between 1946 and 1964. According to the U. S. census of 2000, there are around 83 million baby boomers. Now, the baby boomers are between the ages of 42 and 60, a fact indicating the exit of baby boomers from America’s workforce.

The generation of baby boomers has sprung from a period of economic prosperity and the joy of the post Second World War years. Perhaps due to the times in which they were born, they have not just reshaped the culture of their country, but also redefined themselves.

Baby boomers have attracted a lot of attention due to their distinct features and outlook on life. They belong to an affluent generation that has had a major impact on the U. S. economy.

What Do Baby Boomers Feel about Retirement?

A large number of surveys and studies have been conducted on baby boomers. The following facts were brought to light by a special investigation conducted to determine the baby boomers’ views on retirement.

Baby boomers are looking forward to retirement because it will give them an opportunity to focus on family life and pursue their hobbies and interests. For many of them, retirement is a golden opportunity to pursue another career more suitable to their age and taste.

Baby boomers aim at both professional and personal fulfillment, due to which they focus a lot on preparing and planning for their future. Social security means a lot to them because they utilize to the full the benefits of life and health plans.

Baby boomers are optimistic with a conservative outlook on money and financial matters.

Baby boomers became more successful at the finanical level than their parents. Compared to their parents, they are more likely to work even during their leisure days.

Baby Boomer Impact on U. S. Economy

U. S. economy soared when the baby boomers made their entry into the American workforce. They constituted the major source of labor. Their retirement from the workforce will naturally have a major impact on the country’s economy.

The United States Bureau of Labor Statistics fortells an acute shortage of labor that has to be given immediate attention. This labor shortage is believed to have an adverse effect on the country’s economy.

When baby boomers entered the workforce of American the economy grew at a rate faster than the growth of its population. When the baby boomers retire from the workforce, the growth of American labor force will be much slower, and it will be more difficult to maintain a flourishing economy.

Solutions to America’s Labor Problem

The only way for the United States to save its economy is to persuade its current workforce of baby boomers to continue working for a long time. To encourage baby boomers to retire late, companies and organizations can use the following methods:

Raise the retirement age of those who receive social security pension to 67. This will encourage baby boomers to continue working till the age of 66 so that they enjoy the full benefits of their social security pension.

Redefine pension benefits so that people who extend their stay in the workforce will receive more pay. This method will bear more fruit than just raising the age of retirement to 67. It will inspire baby boomers to hold on to their respective positions for longer years.

Baby boomers enjoy preparing for a financially secure retired life. Due to this, the above-mentioned offers will inspire and encourage them to hold their jobs for longer periods of time. Companies as well as baby boomers will enjoy equal benefits if baby boomers extend their stay in the workplace.

Long-term Solutions

Companies are very much aware of the impact caused by retiring baby boomers on the country’s economy. They have to prepare solutions to deal with the problems caused by a depleted work force. Organisations and companies that have hired baby boomers must modify their policies to accommodate their senior baby boomer employees. At the same time, they must seek lasting solutions to the problems caused the retirement of senior baby boomers. Learning about the views of baby boomers toward retirement is one of the ways of dealing with the situation.

The only solution to the problem of labor shortage would be the retention of senior workers, correction of gender imbalances at work, hiring of immigrants, and outsourcing work. Several American companies and organizations are planning to do this, and some have already begun to use these solutions.

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