8 Baby Boomer Statistics That Will Surprise You
At nearly 80 million strong, the Baby Boomer generation makes up a massive part of the American population. This group is a big part of our economy, and as they continue to retire over the next decade or so, it could have huge implications on programs such as Social Security and Medicare. With that in mind, check out the following 8 statistics about baby boomers and their impact on our economy – past, present, and future.
There are about 77 million baby boomers in the U.S.
Baby boomers were born between 1946-1964 in the post-World War II era. Approximately 77 million Americans were born during this time period, making their generation significantly larger than the generations both before and after them. While the millennial generation has edged them out in size, they are nonetheless a massive group.
10,000 Baby Boomers are reaching retirement age every day
According to AARP, 10,000 baby boomers turn 65 every single day, with this expected to continue into the 2030’s. This breaks down to nearly 7 baby boomers turning 65 every minute! This is the main reason that Social Security and Medicare are expected to run into serious financial trouble in the coming decades.
Some States Have Particularly High Concentrations of Baby Boomers
With 36.8% of the population of Maine being made up of baby boomers, and New Hampshire coming in at a close second, Montana and Vermont also boast populations of baby boomers over 35%. On the opposite end, states such as California, Texas, Arizona, Utah, and Georgia have the lowest concentrations of baby boomers.
Baby Boomers are not well prepared for retirement
The average 401(k) balance for someone in the age group of 55-64 is $177,805 according to a report from Vanguard , with the commonly used “4% rule” of retirement, this translates to a sustainable annual income of only $7,112 in retirement. Even when combined with social security income, this falls way short of what most retirees need to sustain their quality of life. To make it even worse, 45% of baby boomers report having no retirement savings whatsoever.
Baby Boomers are an entrepreneurial group
Despite the common perception of the millennial “start-up’ culture, baby boomers edge them out with being twice as likely to as them to start a new business. Also, 45% of baby boomers consider themselves entrepreneurs.
Baby boomers control more than two-thirds of the disposable income in the U.S.
According to a recent study, baby boomers are projected to have 70% of all disposable income over the next five years. Even more than that, baby boomers will inherit $15 trillion in the next 20 years
A majority of baby boomers support their adult children
According to a recent survey, 59% of baby boomers who are parents are financially supporting their children between the ages of 18-39. There are multiple reasons for this, such as record-high student debt, and a difficult job market for recent college graduates.
Many of them plan to work beyond age 65
Maybe because of worries about Social Security and Medicare, or a lack of savings for retirement, as well the level of financial support that they provide their adult children, 65% of baby boomers plan on continuing to work beyond the age of 65. But a study by Voya Financial found that 60% of retired workers had to stop working before they had planned to. The reasons for this was due to layoffs, and health concerns, which is one of the top reasons that people start to claim Social Security early at age 62.
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