Baby Boom By: Group 7 What is the Baby Boom? - PowerPoint Presentation

Baby Boom By: Group 7 What is the Baby Boom?
Baby Boom By: Group 7 What is the Baby Boom?

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Slide1

Baby Boom

By: Group 7Slide2

What is the Baby Boom?

People born from 1946 to 1964

Huge increase in birth rate

Cause by return of WWII SoldersSlide3

Population ChangeSlide4

Major Risks faced by baby boomers

Not financially ready for retirement

Social security is underfunded

Stock Market problemsSlide5

Changing the Workforce

Average retirement ages is about 65

Baby Boomers are starting to leave

Businesses losing skillsSlide6

WorkforceSlide7

What’s the impact of their retirement?

Baby boomers start to leave the workforce, leaving less people to work for the society

America’s elderly are living longer and the cost of health care is ring dramatically. Two factors that make it expensive to take care of these retiring baby boomers

There is a risk that the next generation will not get enough social security

Baby boomers are taking their money out of the market, which makes the market unsteady?Slide8

Not Financially ready for retirement

Most baby boomer are ill-prepared for their retirement

According to one recent survey, 36 percent of Americans say that they

don’t contribute anything at all

to retirement savings.

Their home equity was destroyed by recent financial crisis

401ks were devastated when the stock market tanked

Over 30 percent of U.S. investors currently in their sixties

have more than 80%

of their 401k invested in equities.  So what happens if the stock market crashes again?Slide9

Not Financially ready for retirement

Their home equity was destroyed by recent financial crisis

401ks were devastated when the stock market tanked

Over 30 percent of U.S. investors currently in their sixties

have more than 80%

of their 401k invested in equities.  So what happens if the stock market crashes again?

The combination of inflation and taxation significantly erodes retirement savings and income.

FACT BRIEFING: Boomers Generous to a FaultSlide10

FACT BRIEFING: Boomers Generous to a Fault

Findings from the Ameriprise Financial

Money Across Generations® study.

three generations--parents of baby boomers, boomers themselves, and boomers’ adult children

http://www.ameriprise.com/global/docs/pr-fact-sheet-platform.pdfSlide11

Threat to Stock Market?

As Boomers retire, they will liquidize assets to create an income?

The wealthiest 10% of the boomers own 2/3 of the boomer’s financial assets

These people will not need to pull out assets to pay for retirement

Since they entered the workforce in 1971, the fund industry increased from $55 billion to $10.7 trillion.

42% of that is invested in US Stock FundsSlide12

Best/Worse

Generation Y start replacing exiting boomers in the stock market

Current low interest rates slow shift

Largest portfolios concerned more with passing on wealth

Dramatically conservative asset allocation

Baby Boomers shift to income-oriented investments

The stock market’s long dry spell drags onSlide13

Life Expectancy

In 1935, it was 61.7 years old

Today, it is 78.8 years old

In 2050, it is projected to be 83.3 years oldSlide14

Social Security

Government program

Helps those who are unable to work

Started in 1935 with the New Deal

Today, $ 192,560

In 2050, $254,736Slide15

Social Security is underfund

The federal government has already begun to pay out more in Social Security benefits than they are taking in

35% of Americans already over the age of 65 rely almost entirely on Social Security payments alone.

Approximately 3 out of 4 Americans start claiming Social Security the moment they are eligible at age 62.Slide16

Social Security is underfund

In 1950, each retiree's Social Security benefit was paid for by 16 U.S. workers.  In 2010, each retiree's Social Security benefit is paid for by approximately 3.3 U.S. workers.  By 2025, it is projected that will be approximately two U.S. workers for each retiree.Slide17

Conclusion

Baby Boomers are not financially ready for retirement

Social Security is underfunded

The Baby Boom will be leaving the workforce creating openings

Life expectancy and average years in retirement is constantly growing, putting even more strain on Social SecuritySlide18

How will this affect us?

Unemployment rate may decrease

Social Security will be strained and may not even exist as we grow older

Or… we may be required to pay even more money into Social Security

Since the Baby Boom is comprised of many of our parents, we may be required to support them since many are not financially ready

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Baby Boom By: Group 7 What is the Baby Boom? - Description

People born from 1946 to 1964 Huge increase in birth rate Cause by return of WWII Solders Population Change Major Risks faced by baby boomers Not financially ready for retirement Social security is underfunded ID: 636767 Download Presentation

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