Baby Boomers are expected to live longer, and retire later than any previous generation before them.
Baby Boomers, the huge generation born between 1946 and 1964, are now entering the phase of retirement and at the same time, reinventing what it means to be retired. They are in a unique position: they are benefitting from medical advances that were nothing but science-fiction when they came into this world 50 to 70 years ago. Here’s how retirement for the Baby Boomers will be different from any generation in history.
1. Living longer.
Men who will turn 65 by the year 2030 are expected to live up to six years longer than those who turned 65 in the year 1970. Women turning 65 by 2030 will see a four-year increase within the same time period. Living longer means that one will have to save more for retirement.
2. Working longer.
Men aged 63 who are looking for work in 2014 have increased from 45 percent in 1994, to 56 percent in 2014. Women have also remained in the workforce for longer periods of time: going from 33 percent to 45 percent in the same time period. Better health may be allowing people to work longer into their life, or they are almost being forced to do so because they don’t have enough saved for retirement.
3. DIY Retirement (Do it yourself)
Most Baby Boomers will have to rely on workplace retirement accounts rather than the traditional method of pension. Traditional pensions cover only 10 percent of adults born in the ‘40s and ‘50s, but are expected to cover only 11 percent of those born in the ‘80s. Meeting with a financial advisor and having a retirement plan with regular contributions and a diversified portfolio is the best method of ensuring you’ll have enough when you retire.
Contact SeniorChoices NW in Wilsonville, Oregon for help with all of your retirement questions, including health care coverage.