BIGResearch recently released information on what longevity will do to the population of Baby Boomers moving through society and into what used to be retirement age. Will they be able to retire if they will live longer? What lifestyle will they be able to afford?...
"The U.S. Census Bureau projects with considerable confidence that the number of Americans over the age of 65 will increase over the next 20 years from 40 million in 2010 to more than 70 million in 2020. We have had older people before, but we have never had this many older people, ever, in the history of mankind.
What do we know today about those future older people? They are Boomers, for one. And given that, we can safely say, based on consistent and overwhelming responses to consumer surveys, that Boomers would rather age in place, at home, than in an institutional setting.
We also can safely say, based on hard economic numbers, that most Boomers have not saved enough to finance a secure and comfortable retirement. The Center for Retirement Planning at Boston College says that more than half of all Boomers are at risk of failing to replace their pre-retirement income. Include the risk of needing long-term care, and the number is three out of five.
Logic tells us that there is a considerable gap between Boomer aspirations for the third and fourth quarters of their lives and what they as individuals, supplemented by the federally financed social safety net, can afford. The numbers point to a future of lessened material expectations for Boomers.
Our analyses of monthly consumer surveys by BIGresearch suggest that Boomers are turning their backs on consumerism. They are rediscovering the traditional values of thrift and frugality, which they see as consistent with emerging "green" values of conservation and recycling.
We see two options ahead for Boomers. One is for Boomers to transform everything about aging in our society. The other is to transform themselves and their own expectations about growing older. The first is externally focused and the second is internal."
This could be a great time to work with financial planning/investment/insurance clients on helping our audience prepare for the future so they can live the lifestyle they want when they retire.