The “silver tsunami,” or the mass retirement of Boomers, may cause serious changes to our workplaces and incomes. Currently, baby boomers–those aged 65 and older–make up approximately 17% of America’s population. As they age, more of the boomer generation is retiring.
Explore: Retirement Savings: 4 Expenses Retirees Regret Keeping in Their Budgets, According to Experts
Read more: 6 Unusual Ways To Make Extra Money (That Actually Work)
Baby Boomers are retiring in droves, and 2024 has so far seen a record number of retirees. This year, for the first time, Gen X will overtake boomers in percentage of the workforce. Recent trends may be able to predict the brevity of these changes, but ultimately, only time will tell how mass retirement will affect our economy.
Longer Lifespans and Lower Birth Rates
The baby Boomers made up a large portion of the workforce until very recently.
According to the Wall Street Journal, fewer young people are entering the workforce — this is because there are simply fewer young people than there are baby boomers. Birth rates have exponentially decreased since the 1950s and 1960s post-war boom.
With low birth rates and a large amount of retirees, there is a strain on social security.
“It’s a ripple effect that could basically be a senior-induced recession,” said The Wall Street Journal in a video.
Without proper Congressional changes to social security, mass retirement could have potentially negative effects on the economy.
Learn: Retirement Planning: Here’s How Much Money You Actually Need To Age in Place
Retirees Now Work Longer
With longer life expectancies, many boomers are finding themselves continuing to work past 65, what many consider the standard age of retirement.
“The need for additional income is a significant factor in the decision to work past the traditional retirement age when people have inadequate retirement savings,” said Forbes Magazine in an article.
Boomers fear outliving their savings, and as stated above, with life expectancies rapidly getting longer, it is apparent that some may not be able to live solely off of their 401(k) and social security benefits.
This may affect the workforce, as job opportunities that will arise for young Millennials and Gen Z may not be available anymore if some retirement-age individuals choose to stay working.
Ultimately, the massive amount of people retiring will create an economic shift in the coming years.
More From GOBankingRates
- 10 Cars That Outlast the Average Vehicle
- 8 Things Boomers Should Sell Right Before Retiring
- I've Secretly Put Us in Serious Debt: How To Break the News to Your Spouse
- This is The Single Most Overlooked Tool for Becoming Debt-Free
This article originally appeared on GOBankingRates.com: 10,000 Boomers Are Retiring Daily — How This Changes Banking and Your Finances
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
