The great baby-boomer retirement wave is upon us. According to Census Bureau data, 44% of boomers are at retirement age and millions more are soon to join them. By 2030, the largest generation to enter retirement will all be older than 65.

The general assumption is that boomers will have a comfortable retirement. Coasting on their accumulated wealth from three decades as America’s dominant economic force, boomers will sail off into their golden years to sip on margaritas on cruises and luxuriate in their well-appointed homes. After all, Federal Reserve data shows that while the 56 million Americans over 65 make up just 17% of the population, they hold more than half of America’s wealth — $96.4 trillion.

But there’s a flaw in the narrative of a sunny boomer retirement: A lot of older Americans are not set up for their later years. Yes, many members of the generation are loaded, but many more are not. Like every age cohort, there’s significant wealth inequality among retirees — and it’s gotten worse in the past decade. Despite holding more than half of the nation’s wealth, many boomers don’t have enough money to cover the costs of long-term care, and 43% of 55- to 64-year-olds had no retirement savings at all in 2022. That year, 30% of people over 65 were economically insecure, meaning they made less than $27,180 for a single person. And since younger boomers are less financially prepared for retirement than their older boomer siblings, the problem is bound to get worse.

As boomers continue to age out of the workforce, it’s going to put strain on the healthcare system, government programs, and the economy. That means more young people are going to be financially responsible for their parents, more government spending will be allocated to older folks, and economic growth could slow.

  • Azteh@lemmy.world
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    6 months ago

    Since I agree with you, I’m interested in your opinion of where a potential cut-off point would be. Say X% of people between the ages 18 and 25 get into a car crash yearly, when is it okay to assume that because you are between 18 and 25 you shouldn’t be allowed to drive? Is it when X = 75, lower/higher or is there never a point for you and you’d still prefer to judge an individual?

    • acceptable_pumpkin@lemmy.world
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      6 months ago

      Not that it has any relevance to the rest of this thread, but that’s exactly why some states require people over a certain age (say 75) to retest for their drivers license. So you assess the individual while looking at data on the whole group.

      Same could be said about this broader topic. It’s unfair to lump an entire group together like this. It would be like saying that since most young people don’t vote in elections, we should just disregard that entire block of voters.