Consequences of Baby Boomers Retirement

Table of Contents

Introduction
The Impact of the Demographic Shift
Conclusion
References

Introduction

By 2030, I will turn 52, while my father and mother will reach the age of 77 and 78, respectively. I think that the consequences of the current pandemic will span beyond 2020. Social distance will remain a rule, as well as the overall mentality towards maintaining a sterile environment. Digitalization will probably pervade all spheres of life, with minimal physical contact in healthcare, jobs, and recreation.

The Impact of the Demographic Shift

The generation of baby boomers is approaching its retirement age. By 2030, three significant changes are expected to take place in the US demographics. Firstly, the last of the baby boomers will celebrate their 65th birthday, thus making 21 percent of the population in retirement. Secondly, the number of older adults will be higher than the number of children, which is unprecedented for the US. Thirdly, immigration will take over the natural increase as a major driver of population growth. All of these prospects will significantly affect many levels of American lives.

The first areas likely to be impacted by the demographic shift are social security and healthcare. The expected number of retired citizens will financially strain the social welfare system. Reznik et al. acknowledge the imminent problem and offer the reduction of retirement benefits. The first option is to raise the retirement age, while the second is to encourage people to continue working during retirement. Due to increased longevity, people can work longer. It is possible that not physically demanding occupations will have a higher retirement threshold.

As for healthcare, Meola (2019) argues that shifting to home care is a possible solution. Doctors will be able to treat patients outside of clinical settings due to digital technology. That will also require sufficient living arrangements, which have remote patient monitoring technology. Meola (2019) references the research, which states that 87% of adults age 65 and older want to stay in their current home and community as they age (Digital Health Trends for The Aging Population Section, para. 2). Subsequently, widespread installation of home care facilities will save costs for governmental healthcare expenditures.

Another area the aging population will affect is political sentiment. Baby Boomers have always been a highly political generation (Beckett, 2016). The increased lifespan also means the greater interest of elderly people in political affairs. The prevalence of retirement in the social discussion will likely cause a swing to the Democrats. The same principle will also apply to life companionships. Whereas previously families rarely remained in one place, now elder generation reports willingness to stay in their home communities. This implies that baby boomers will retain their relationships while generally favoring conservative views.

Conclusion

As people retire, they seize to be workforce, thus increasing pressure on social welfare. Younger people are encouraged to save early for retirement, while the government searches for new revenues to compensate for the resulting expenditures. The most probable solution is either raising the retirement age or raising the taxes. Both lead to social dissatisfaction and anti-government sentiment. In light of these prospects, there are two ways the younger generation can prepare for the difficulties of old age. The first is maintaining good health and living a healthy lifestyle. The second is financial savings in private funds to be less dependent on the official regulations on retirement.