Depending on your own age, you are either overly familiar with the baby boomer generation because you are a baby boomer, or you have an “arm’s length” familiarity being the child or grandchild of baby boomers. Be that as it may, since the youngest baby boomers will turn 55 in 2019, our John Bailey Company team would like to focus the lens to learn how baby boomers ready for retirement. Or do they?
First, a quick glance at baby boomers
“Baby boom” is a phrase that refers to a defined time-period when the birth rate escalates. In the United States, research experts offer that baby boomers refer to children born between 1946 – 1964; however, some submit there are two segments with the leading-edge boomers arriving between 1946 -1955 and the trailing-edge or late boomers being born between 1956 – 1964. And, if you are uncomfortable with either label, then you can consider these: “golden boomers,” “generation Jones,” “alpha boomers,” “hippies,” “yippies,” “yuppies,” “zoomers,” and “cuspers.”
76 million baby boomers were born in the United States from 1946-1964 and interestingly enough this boom immediately intrigued marketeers. It is reported that on August 9, 1948, Newsweek published an article “Babies Mean Business.”
Second, baby boomers by the “numbers”
Many of us would be surprised to realize that it was not until 2011 when the first group of baby boomers celebrated their 65th birthday. At that age they could qualify for Medicare, the national health insurance program which generally provides coverage for those U.S. Citizens or permanent residents 65 and over. Medicare took effect in 1966 following President Lyndon Johnson signing H.R. 6675 in 1965, just one year after the end of the baby boom in 1964.
According to Pew Research, by 1999 there were 78.8 million baby boomers and by 2016 the number was estimated to be 74.1 million. In July 2017, Motley Fool reported that according to the American Association of Retired Persons (AARP), 10,000 U.S. baby boomers celebrate their 65th birthday every single day.
Finally, let’s examine if baby boomers are ready for retirement
You may recall in October 2018, we published a blog post about Long Term Care Insurance. At that time we discussed the challenges of providing long-term care coverage for ourselves or our loved ones who may expect to live two or more decades past retirement. It is all about long-term planning, including considering the benefits of life insurance being a part of your estate planning toolbox.
After noticing a number of fairly recent articles dealing with baby boomer’s readiness for retirement, we determined to provide you with a “reading list” to help you in your journey to insure a great life. Some articles you might find encouraging, while others may be shocking and certainly give you cause for thought.
- “Worried About Retirement? You Need A Plan In Motion,” Forbes, January 28, 2019
- “Health Costs A Major Concern For Adults Nearing Medicare Eligibility,” Philadelphia Inquirer, January 3, 2019
- “Life Insurance As A Baby Boomer Estate Planning Tool,” Insurancenewsnet.com, December 27, 2018
- “Do ‘empty nesters’ need life insurance?,” Insurance Information Institute (III) article
- “BOOMER Expectations for Retirement 2018,” Insured Retirement Institute (IRI), April 2018
- “Why Baby Boomers Should Still Consider Life Insurance,” FOXBusiness, December 27, 2017
- “1 in 3 Americans Have $0 Saved for Retirement,” GOBanking Rates, March 14, 2016
So, are you ready for retirement?
As we start 2019, the John Bailey Company would like to invite our current clients and future clients to meet with our team to review your retirement plan (regardless of your age). Remember our Mission Statement: “John Bailey Company is an independent insurance agency; we solve problems, provide protection, and generate opportunities for our clients by creating insurance solutions.”
Contact us today, we promise integrity, service and expertise. Let us help you plan your retirement and insure a great life.