Retirement Planning

Economic factors will play a role in baby boomers working beyond the age of 50. Due

Today, the certainty of receiving sufficient benefits solely from Social Security for a quality standard of living after retirement is indefinite. Baby boomers—individuals born post World War II between 1946 and 1964—are beginning to claim their benefits, and given what I have learned in class, the number of individuals entering the workforce is inadequate to sustain such a large population, thus such generation will consume

In today’s society, the work industry is comprised of numerous generations from baby boomers to millennia’s. Due to reasons ranging from increased cost of living to political policies, Americans are being forced to work longer in order to obtain the social security benefits they’ve contributed to during their careers. Each generation has certain generational influences such as war times and civil rights for the baby boomers and social media and the technology boom for the millennia’s. One constant that has not changed, however, is that the average American has to work for a living, and with the evolution of the US economy, they are having to work longer and are retiring later.

When boomer demand slams into the market place, prices soar (until the fad passes). Nothing stops the baby-boomer. There is somewhat of a bright side to all the spending and boomer traffic. Being just a few steps ahead of the boomer can make an individual very well off if you know which way they are headed. Boomers have always acted this way. Still the largest generation in the United States has been shifting markets ever since the diaper and baby food industries in the late 1940's (Geoffery 59-64). Construction of elementary facilities exploded for municipal budgets—Los Angeles was spending $1 million a week on new schools in the mid-1960's (Geoffery 59-64). After that happened, the boomer moved on abandoning a huge amount of those facilities. When younger boomers wanted cars, the Mustang and Camaro were considered a phenomenon and as the boomer herd passed so did the sales. Suburban homes in beautiful areas were next since boomers were doing the family thing. Prices on suburban homes exploded in the 80's and as usual; when the boomer left, so did the sales.

The majority of people age 65 or older in the United States are still working in full time positions. This opens the question if they planned for retirement, or what if anything went wrong while working? How do they feel about still having to work? Have they taken proper steps in preparing for retirement? Are they only working to pass time? These are the questions that everyone should be asking themselves about their own retirement plans, and what they have done to financially prepare for that stage in their life.

According to a USA Today article from last year, nearly sixty percent of Americans have more than $25,000 put away for retirement. Thirty-six percent of Americans have less than $1000 saved for later in life. This means that as more people, especially the baby boomer generation, retire, there will be more strain on program such as Social Security and Medicare, and ultimately the federal budget that is responsible for these programs. If steps are taken now to close this gap, we will insure the continued longevity of these programs by raising the tax contributions flowing into both Social Security and Medicare.

Some economic observers predict financial disasters, both national and personal, when the baby boomers retire. They say that as nations of workers and investors become nations of retired consumers, withdrawals will far outweigh deposits in investment and savings vehicles.

The Baby-Boom generation is nearing retirement and it is clear that millions of aging Boomers are financially under prepared. Reasons are many - poor savings habits, rising medical costs, the demise of guaranteed corporate pensions, and the dreaded squeeze faced by many: i.e. having to pay college costs for their children, care for their elderly parents, and save for retirement, all at the same time.

Consider what you would like to do with your retirement years. Ask yourself a few questions such as, do I want to downsize to a smaller home? Are there enough savings to maintain my current lifestyle? Advantages of Early Retirement: early retirement allows more time to travel, take up or devote time to current hobbies and spend more time with the family. You can still start a new can go to school or start a new career.

Baby Boomers have been one of the most powerful forces in shaping the economic environment and are the wealthiest generation in the United States (Kotler and Armstrong, 2015). “In their early years, “Leading Edge” Boomers enjoyed economic prosperity, and their resulting financial power in their prime years drove rising trends in everything. However, the recessionary years of the early 1970’s also added cautionary realities to their youthful consumption and employment dreams” (“America’s Oldest Boomers”, n.d.). Baby boomers control approximately 70% of the disposable income in the United States, therefore, they are known as being one of the most influential financial forces in the marketplace (“Baby Boomers Report”, 2015). As they reach their

The largest generation of baby boomer approaches the age of retirement and they are concerned about the Social Security retirement, which cause a financial challenge to the society. Baby boomers are the first generation and the majority of them is prepared to exit the workplace. From an economic perspective, baby boomers have financial stress that can have an influence on their ability to last the standard life of retirement, which is revealed through the following causes: they have insufficient retirement savings and they are burdened with unprecedented mortgage debt.

Retirement living means that instead of sitting down at your kitchen table with an array of bills in front of you – cable, electricity, heat, cleaning – you sit down on an outrageously comfortable chair for an intense game of duplicate bridge, or head off to the Lancashire Pub Lounge for a pint of bitter. You do

Data is cited showing that, in an aging population, individuals rely on state support in their retirement years. Suggested policies include financial literacy programs, delayed retirement, automated personal saving, and financial advisory reform. Nishiyama et al. (2014) proposes that a key problem regarding personal savings, assets, and retirement are the very state funded programs designed to help retirees. The research concludes that median income levels among the Boomer generation will not be able to support it’s level of “consumption based on it’s own assets” (Nishiyama et al. p. 65) in the retirement years. In conclusion, this study asserts that the financial education and reflexive retirement delay components provide the most broad and effective measures to mitigate budget shortfalls in an aging

A) Based on FASB.org, there are two types of retirement pension plans that are employer-sponsored: defined-contribution plan and defined-benefit plan. The different benefits of these plans show if an employee or an employer has risks in reference with the investment of funds. They also change the costs for each plan.

Planning for retirement should not be based on Social Security alone, but rather by saving portions of personal earned wages and putting finances into long-term investments. Depending on Social Security as the only income after retiring is an unsafe and undependable way to prepare for retirement. People who contribute to Social Security are mandatorily putting money into the Social Security Reserve; this money is used for older generations that will file for these benefits before the younger people working, in the early 21 century, ever receive a chance. Money controlled by other’s hands will never be a guarantee for a secure future, yet money saved by an individual to put toward personal goals will reward greatly. By taking the time to