This week is National Retirement Planning Week and Baker Creative wanted to look at the progress baby boomers are making in retirement. It turns out retirement may be further in the future than we thought. It is no secret that the economy has been on the lower end of the ladder for the past several years and as it turns out it is affecting our older generations.
According to IRI, baby boomers’ confidence in retirement has decreased by 7% in the past two years. Baby boomers have come across expenses they were not aware they would have. Increasing medical bills and college tuition from their children have become roadblocks to the goal of retiring. For some though, retirement is boring and the love for the corporate world is creating an issue for younger generations.
What does this mean for baby boomers and Generation Y?
Baby boomers may have to push back their retirement 10 years, which could cause issues with Generation Y getting jobs they went to college for. This could cause businesses to suffer. With the emerging world of technology and the constant move into the digital age, baby boomers are not as educated on the technology side as Generation Y.
Businesses that cater to the retired could also suffer. Retirement communities, golf courses, leisure vacation spots are all targeting the baby boomers to sell their products. If there is less of an audience to sell to, it could result in these businesses taking a financial shortfall.
Generation Y is seeing the impact of this issue as well. Graduating from college is getting pushed further back because there are no jobs to go to. These younger adults are settling for retail jobs and restaurant jobs while waiting for their job in the field they studied for to open up. This could set them back in excelling up the corporate ladder. For example, after five years of searching for a career, a recent college grad will enter an entry-level job that does not pay as much as they need at their age. This will make it hard for them to pay off loans, buy a house, start a family, or invest in a new car. This trickle-down effect will most likely delay their retirement due to a late start in their careers.
It is understood that some baby boomers do not have a choice on whether they consider retiring or not. For those who love the corporate world, consider retirement or at least take a Generation Y worker under your wing to pass on your knowledge and legacy. They can learn a lot more from you on the job in comparison to what they might have learned in college.