theLeaseBlog - Connection Network
International Leasing & Asset Finance Network
Baby Boomers Begin to Retire at 330 an Hour in 2008
On February 15th 2008 the first baby boomer received a Social Security check.
We all prepared for the year 2000 and the impact that computers were going to have on us all. Many people bought generators and stocked up on food and water, expecting the end of the world.
When nothing happened at midnight 2000 a strange dynamic settled in that bears a resemblance to something I noticed living 30 years in Florida. I call it Disaster Denial.
In Florida Hurricanes come almost every year. Everyone hears about the “big ones” Andrew and Camille, BUT many storms come and go; near misses, where everyone boards up their windows, changes the oil on the generator, and fills the bathtub with water. Only to have the storm miss the coast or turn on the Gulf Stream to the North at the last moment. People move to the area without the understanding of how bad a storm can be and ignore the warning signs when a real storm approaches. This all leads to a complacent population and Government ill prepared for a storm like New Orleans. Ignorant of the power of a storm like the one that hit St Augustine FL in the 1500’s that sank the Spanish fleet that made Mel Fischer a rich man, as well as moved the entire inlet there almost ½ mile away from its original location. It is true, the inlet is in one place on the maps before this tremendous storm and when the waters went back out to sea, the inlet was in a different place.
Here are some facts to consider about a coming storm.
According to the US Census in 2006, the oldest of the baby boomers, the generation born between 1946 and 1964, turned 60 years old. Among the Americans celebrating their 62nd birthday in 2008 will be our two most recent presidents, George W. Bush and Bill Clinton. Other well-known celebrities reaching this milestone include Cher, Donald Trump, Sylvester Stallone and Dolly Parton.
78.2 million
Estimated number of baby boomers, as of July 1, 2005.
7,918
Number of people turning 62 each day in 2008, according to projections. That amounts to 330 every hour.
57.8 million
Number of baby boomers living in 2030, according to projections; 54.9 percent would be female. That year, boomers would be between ages 66 and 84.
When we look at the coming retirement of the Baby Boomers we must see that the richest generation will be retiring at the rate of over 300 an hour this year and the impact will be a drain on our companies top talent as they do. The best, brightest, most experienced will be cashing in and moving on with their lives and there will be fewer people to replace them coming up behind them. A generation with wealth will mean fewer workers to supply a demand for goods that will not decrease with the diminished workforce.
Is anyone tracking this? Are Senior Managers and HR Directors prepared for this coming storm?
I am seeing some Disaster Denial dynamic out there.
I intend to address this issue in more details. I welcome any comments on this here as well.
We all prepared for the year 2000 and the impact that computers were going to have on us all. Many people bought generators and stocked up on food and water, expecting the end of the world.
When nothing happened at midnight 2000 a strange dynamic settled in that bears a resemblance to something I noticed living 30 years in Florida. I call it Disaster Denial.
In Florida Hurricanes come almost every year. Everyone hears about the “big ones” Andrew and Camille, BUT many storms come and go; near misses, where everyone boards up their windows, changes the oil on the generator, and fills the bathtub with water. Only to have the storm miss the coast or turn on the Gulf Stream to the North at the last moment. People move to the area without the understanding of how bad a storm can be and ignore the warning signs when a real storm approaches. This all leads to a complacent population and Government ill prepared for a storm like New Orleans. Ignorant of the power of a storm like the one that hit St Augustine FL in the 1500’s that sank the Spanish fleet that made Mel Fischer a rich man, as well as moved the entire inlet there almost ½ mile away from its original location. It is true, the inlet is in one place on the maps before this tremendous storm and when the waters went back out to sea, the inlet was in a different place.
Here are some facts to consider about a coming storm.
According to the US Census in 2006, the oldest of the baby boomers, the generation born between 1946 and 1964, turned 60 years old. Among the Americans celebrating their 62nd birthday in 2008 will be our two most recent presidents, George W. Bush and Bill Clinton. Other well-known celebrities reaching this milestone include Cher, Donald Trump, Sylvester Stallone and Dolly Parton.
78.2 million
Estimated number of baby boomers, as of July 1, 2005.
7,918
Number of people turning 62 each day in 2008, according to projections. That amounts to 330 every hour.
57.8 million
Number of baby boomers living in 2030, according to projections; 54.9 percent would be female. That year, boomers would be between ages 66 and 84.
When we look at the coming retirement of the Baby Boomers we must see that the richest generation will be retiring at the rate of over 300 an hour this year and the impact will be a drain on our companies top talent as they do. The best, brightest, most experienced will be cashing in and moving on with their lives and there will be fewer people to replace them coming up behind them. A generation with wealth will mean fewer workers to supply a demand for goods that will not decrease with the diminished workforce.
Is anyone tracking this? Are Senior Managers and HR Directors prepared for this coming storm?
I am seeing some Disaster Denial dynamic out there.
I intend to address this issue in more details. I welcome any comments on this here as well.
Tags: baby, boomers, employment, leasing
Add a Comment
2 Comments
-
Comment by Fred St Laurent on July 17, 2008 at 6:24pm -
See answers to this in the next blog (I am posting it now)
Thanks Marty, GREAT questions.
-
Comment by Marty Johnson on July 17, 2008 at 3:29pm -
Fred,
Nice article and commentary. I know the numbers are astounding, being a boomer myself, though I'm at least 15 years from retirement and with three small children and a stock market mired in stagnation, not likely to be seriously considering retirement even then. Which brings me to my point. Are all of those who are hitting retirement age actually retiring? I know that there are some companies with mandatory retirement age, but are we actually seeing the droves of people leaving the workforce?
Which brings me to my second point. If there is such a coming "storm" from a serious lack of [labor] supply to demand, why aren't wages spiking up? Being one of those still in the work force, I'd love to say "You want me so badly, pay me 15% more than the person who just retired." Not happening. Not in this market and I don't see it happening in the future.
So while I agree that the numbers are there, I'm wondering if the market itself is keeping people from retiring.
I'd also like to know the statistics on how many of these retiring boomers have traditional pension plans versus 401(k) type investments or even after tax investment portfolios. I think I read somewhere that the average 401(k) investments of those retiring now is $65,000. Certainly, not many people are relying on that as income for retirement. And with the trends away from traditional defined benefit plans, I think there is a much larger storm brewing.....a retirement community that has to drastically curtail their style of living......or keep working to maintain it.
© 2009 Created by LeaseBlog Moderator
You need to be a member of theLeaseBlog - Connection Network to add comments!
Join this social network