Born between 1946 and 1964, Baby Boomers make up 28% of the population in the United States. Within that 18-year span, there were nearly 72.5 million babies born in the US that would forever change important social and political views through some of our nation’s most turbulent times. From the Civil Rights Movement, the Vietnam Era and the birth of Free Love – Baby Boomers saw the need for community involvement and value as individuals to effect change.
Fast forward to today, this great generation is now retiring in droves. From 2011 to 2029 approximately 10,000 Baby Boomers will turn 65 every day – Happy Birthday Boomer! These staggering figures mean that the population of retirees is growing faster than the population of working-aged Americans. Hence, Social Security’s beneficiary-to-worker ratio will increase and benefits steadily decline, even with an extended retirement age and other measures enacted under the Social Security Amendments of 1983.
But let’s face it, we knew Social Security benefits weren’t going to sustain us in retirement. Yet, according to a 2019 Retirement Preparedness of the Boomer Generation report by the Insured Retirement Institute, 45% of baby boomers do not have any retirement savings. So where does that leave this incredible generation in their golden years? Aside from the obvious, like the highly publicized nosedive of Social Security benefits, here are the top unique challenges facing Baby Boomers in Utah:
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- Baby Boomers are Living Longer
- Boomerang! Adult Children Moving Home
- Baby Boomer Retirement Crisis
Baby Boomers are Living Longer
Life expectancy for The Silent Generation (1925 – 1945) was 12.5 years past age 65. Projections from now to the year 2030 shows life expectancy for women increase to 21.6 years beyond age 65 and 19.2 years for men. This means BB’s are likely to live 9+ years longer than their parents. This is due, in part, to improved early detection along with advanced treatments and care for cancer, heart disease and stroke according to the Centers for Disease Control (CDC).
However, living longer does not mean living better for many older Americans. With age comes risks like developing multiple chronic conditions that impair mobility, hearing, sight, speech and self-care. The consequences on the budget of a poorly-prepared health care system have already proved to be profound, not to mention healthcare and long-term care costs for retirees and their families.
Coming face-to-face with important issues like end-of-life decisions and the legacy of your family will save your loved ones from the difficulty of making them without you.
Having a plan to enjoy the latter years is one thing and preparing for end-of-life events is just as important in a comprehensive estate plan. A detailed estate plan will help keep difficult decisions private and out of probate and the public eye, contact a trusted estate planning attorney in Utah for a free, confidential consultation.
Boomerang! Adult Children Moving Home
One of the most unique 21st century challenges facing Baby Boomers is the record number of adult children who move back home. Labeled as ‘boomerang kids’, the 32% of adult children between 18 – 34 years old are currently living with their parents because they simply can’t afford to live on their own. This trend is fueled by student debt, an outrageous housing market, stagnant wages and an unprecedented cost of living.
Beyond the obvious, ‘no parties while we’re gone‘, Boomer parents need to set boundaries. Adult children with family and debt of their own need to remain in charge of their own obligations. Gen Xers are less likely to become parental caregivers but should still be expected to chip-in around the house and contribute financially. Boomer parents can easily jeopardize their own fiscal well-being and retirement plans if providing a place to live turns into full-on financial support.
Baby Boomer Retirement Crisis
A lifetime of hard work and loyalty was the guarantee for a pension back in the good old days. These days Baby Boomers are face-to-face with post-financial crisis challenges like derailed pension plans or left with drained retirement accounts as a result of the housing crash. So, what does retirement look like now? Without the security of a nest egg tucked away and no significant savings; a great majority of older Americans are staying in the workplace longer.
Not having enough money to retire is not the only reason older Americans are working past retirement age. The growth of the current and upcoming working-age population is slower than the number of those retiring, leaving a gap. ‘Your shoes will be hard to fill after you’ve left Boomer.’ Yet, in spite of the Baby Boomer Retirement Crisis, individuals from every corner of this country and from every socioeconomic background imaginable are retiring. Secure plans for retirement are being reached with creative planning, compromise and crafty execution.
Meet Utah-Based Estate Planning Attorney Eric Froisland
Planning your estate is about more than money. Established attorney, Eric Froisland is a trusted estate planning advocate with over 15 years’ experience in The Beehive State. Establishing wills and trusts and choosing the best options for you and your family can be daunting and confusing. But you don’t have to go it alone, call Eric at 801-290-2130 to customize your estate plan with established beneficiaries and make medical decisions now to ensure your privacy and dignity remain intact in the event of a medical emergency.