The Baby Boomers: a force for change then, a force for change now.
Even though they were born over a span of just 18 years, from 1946 to 1964, one group of people has changed the world more than any other generation. And they continue to change the world, even as they age. In fact, they’ll impact life as we know it even after the last one of their group is gone.
They’re people from the generation called "Baby Boomers." And from the day the first "Boomer" was born, everything has been different. Politics, jobs, women’s rights, childrearing, education, civil rights – America has been transformed by the post-World-War-II baby boom in every way imaginable.
Another thing that’s going to be different is the workplace as Baby Boomers get older. So let’s take a look at who these people are, and why we should know more about them.
The end of World War II: when it all began.
When World War II ended, young men came home to America from military duty and began to start families. How dramatic was the change in the birth rate? In a word, it was incredible. Between 1930 and 1945, the average U.S. birth rate was about 2.3 to 2.8 million babies a year. But in 1946, the first year after the war, the number of births shot up to 3.47 million – a huge difference. And it went on from there, reaching a high of 4.3 million births each year in the late 1950s and early 1960s.
All told, U.S. Census records estimate that more than 76 million Americans were born in the 18 years after World War II ended. That’s a lot of people!
What’s more, Canada and Australia saw baby booms in the same period. So around the world we have a huge group of people all reaching the age that used to be called "senior" at about the same time.
As an employer, what does this mean for you?
There’s no doubt that having nearly 80 million Americans approach retirement age at the same time will bring some changes. What those changes will be have been the source of much discussion – surveys and polls are everywhere you look. The current economy is making a big difference, too.
A recent report by Peter Francese for MetLife says Baby Boomers:
- Will stay healthy longer. Better nutrition, better medicine, and better, safer living conditions mean longer, healthier lives.
- Are changing what it means to be a grandparent. There are many reasons for this, but more and more older people are raising their children’s children. This "second parenthood" will have a big effect on benefits plans.
- Are changing what we think "elderly" means. Many of the personal and institutional issues that older people used to face are changing. More people graduated from college in the Baby Boom generation than any before it, so they’re better-educated. And if the white-collar jobs are available, they’ll stay in them. In fact, "The New Retirement Survey" by Merrill-Lynch says that because Baby Boomers will live longer, they’ll create a totally new stage of life. What used to be considered a senior citizen might now be just be something like "later middle age."
- May retire later. In the past, we saw most people retire before age 65, often between the ages of 60 and 64. The "Early Boomers" – those Baby Boomers now in their late 50s or early 60s may not retire until they’re closer to 70. New finance and family situations may mean they have to work longer. In some cases they might be worried about outliving their retirement funds. In other cases people might just not want to retire. A 2011 poll by the Associated Press and LifeGoesStrong.com says that only 11% of people aged 55 to 64 are certain they’ll have a comfortable retirement. 55% of the people polled think they’ll be able to retire with some security, though they don’t think it will be easy. And another 44% don’t feel very confident about their ability to retire at all.
- May only retire from one career, but start another. The New Retirement Survey says 76% of Baby Boomers intend to keep working and earning after the age of 65, but perhaps in a new or different job or career.
To sum up:
Their work lives might be longer. They may have a whole "second family" of grandchildren who need medical care. And their retirement planning may get more complicated as time goes by. And all these things mean you may have to rethink retirement and health benefits differently. You might also have to look at how to handle jobs and benefits for the younger generation coming into the workforce.
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