I was watching a show earlier this evening that had a couple of people talking about the coming Baby Boomer crisis. According to their calculations, there will be a huge market and economic crash in about 2017. This is the date that the government will officially start paying out more in retirement benefits to aging Baby Boomers than they are taking in from the public.
Won’t that be nice? All of those people who are still working will be supporting all of those retired at a ratio of about 2:1 (rather than the 20:1 that our grandparents paid out.)
Their forecast is that even financial assistance that is currently available to young people will dry up. I’m talking about student loans, small business loans etc. The available cash will be sucked up by all the extra health care costs and medications.
Based on my research, it looks like we’re heading towards this crash. Even knowing this, I got stuck in the same rut in thinking that it’s a long way off. It’s only 9 years away (I’ve also heard estimates that it will hit in 2013) so be prepared.
It doesn’t matter how old you are. Start doing your own research and at least be aware of the issues that aging Baby Boomers will bring to the forefront in politics, taxes and your lifestyle.
Let the countdown begin. Keep track with my RSS Feed.