posted on May, 22 2007 @ 01:39 PM
Originally posted by radardog
There are a few things that worry me:
1. Baby Boomers are retiring. When people retire, they slowly pull money from their investments for cash. Pensions work along the same method - the
money coming from your 401k or pension is money that was once invested in stocks or bonds.
2. The population in the United States follows an upside down pyramid model in terms of age. There are much more older Americans than younger
Americans. Thus, a lot more pulling out their investments than putting in.
3. Younger americans are less likely to invest than their older counter-parts. Wherein the most investments that younger americans tend to do is the
money market of the checking or savings account (where they earn minimum interest for exchange of high liquidity).
To the guy up there that had a pep talk about his 401K...........think Morgan Scamley.
I think we are getting ready to experience a lot of changes in lifestyle, but the most drastic will be for the Gen-Xers and younger who don't seem to
have a clue. This is our legacy to them, I'm glad I never had kids. If anyone has noticed, the age group who has amassed the greatest fortunes
through greed are in the 40-70 yr age range. The American dream will be gone because if you aren't born into wealth, you can forget it...the divide
between rich/poor keeps growing. The following is but one of the problems you will be facing.
The retired portion of the population will grow dramatically as the baby boomers slip into retirement over the next two decades. The Social Security
Administration's Office of the Chief Actuary projects that the number of Social Security Old-Age and Survivors Insurance beneficiaries per 100
workers will increase from 25 beneficiaries in 2000 to 26 in 2010, 32 in 2020, and 39 in 2030 (Social Security Administration 2005, p. 55). While most
attention has been focused on the projected increase in the number of retirees, the demographic composition of the population at ages 62 and
over—the age at which people first become eligible to receive Social Security retirement benefits—will also be changing significantly. These
demographic changes have implications for the well-being of future retirees.
Newly eligible retirees are increasingly better educated, but that will level off after 2012. Among those who reached age 62 in 1993–97, 27 percent
were high school dropouts, 56 percent were high school graduates, and 17 percent were college graduates. In contrast, for the early baby boomer birth
cohorts, who will be 62 in 2008–2012, 30 percent are college graduates and only 12 percent high school dropouts. These percentages will remain
roughly constant for future birth cohorts through those that turn 62 in 2028–2032. Non-Hispanic whites are declining as a share of the 62 and over
population and will continue to decline for the next few decades. Non-Hispanic whites were 82 percent of 62-year-olds in 1993–97, but are 79 percent
of 62-year-olds in 2003–07 and will be only 64 percent of 62-year-olds in 2028–2032. The share of African Americans in this population will rise
moderately from 9 percent in 2003–07 to 12 percent in 2028–32, but over the same period the share of Hispanics will jump from 8 to 15 percent and
the share of other groups (including Asian Americans) will increase from 5 to 9 percent.
The portion of married or widowed among those eligible for retirement is dropping and will continue to drop. Between 1993–97 and 2003–07, the
share of married 62-year-olds declined from 76 to 72 percent; in 2028–32, it will continue to decline to 66 percent. Shares of 62-year-olds who were
never married will increase sharply from 5 percent in 2003–07 to 11 percent in 2028–2032. The share of divorced 62-year-olds has gone up from 10
percent in 1993–97 to 15 percent in 2003–07, but is expected to stabilize after the first baby boomer cohorts reach retirement age in
[edit on 22-5-2007 by Jillian_Bacardi]