The boomer generation is defined as people born between 1946 and 1964, effectively products of the post-World War II economic boom. These are people that will be hoping to either be retired or to retire within the next ten years.
They lived through economic ups and downs and are generally seen as one of the wealthiest generations to date. Thanks to advances in medical care some of these boomers are still earning today, despite being past retirement age.
However, all of them will need to speak to a reputable financial planning firm as there is little doubt that the COVID-19 pandemic will affect their retirement plans.
There are 5 key ways their plans will need to change:
- Investment Shortfalls
The boomers have always had an eye on retirement, looking forward to the promise of exotic holidays and new experiences. However, the financial crash of 2008 will have damaged their investments. While much of the losses may have recovered, the market has been hit hard a second time, thanks to the Coronavirus. Low-interest rates between the two events have also hampered their retirement efforts, leaving Boomers with a serious shortfall in retirement.
_________________________Random Success Quotes to Remember ~ “Successful people do what unsuccessful people are not willing to do. Don't wish it were easier; wish you were better..” - Jim Rohn
- Increased Medical Bills
Boomers are at an age where they are considered at high risk of catching COVID-19 and having serious complications. This has meant an increase in medical bills for many Boomers, something that is destroying their retirement savings.
While some will have good health insurance cover, the current pandemic has hit insurance companies hard. There is little doubt premiums will rise and this will take more out of their pockets A generation that was originally full-on hope and incredibly wealthy seems set to become a decisively split generation in retirement. There will be those with plenty and those with nothing, with very few in between.
- The Property Crash
Boomers may have hoped to rely on equity in their property to help them afford retirement. However, the pandemic has caused house prices to crash. While it is likely they will rise again in the future, it is difficult to know what timescale to place on this and whether it will be of significant benefit to the Boomer generation.
- Early Retirement
The COVID-19 pandemic is causing a second economic crash within 12 years of the last one. Despite governments propping up the economy, it is highly likely that unemployment will rise significantly. This will probably lead to many Boomers being forced into retirement earlier than planned when they don’t have the funds available to support them.
- Changing Retirement Age
Perhaps the biggest change for Boomers is the fact that early retirement will no longer be an option. Any that can hold onto their jobs will be looking to retire years later, allowing their investments and property to regain value. Of course, the knock-on effect of these Boomers holding onto jobs is potentially a lack of jobs for graduates. This could affect their ability to save for retirement giving a long term retirement issue for generations to come.