The 78 million Baby Boomers in the United States are retiring in a completely different way than their parents’ generation. Investopedia’s Mark P. Cussen tells us “How Baby Boomers Will Change The Way Others Retire.” Truly, they already are. The previous generation known as The Greatest Generation had pensions, didn’t worry about Social Security running out, and typically lived in the same homes until they died or moved to a nursing home. Today, Baby Boomers are technologically savvy, they want to move away from the home where they raised a family, and medical advancements have them living very differently than their parents did.
Baby Boomers will live around 10 to 25 years longer than their parents did and they’ll also have less pain and fewer health ailments. The AARP found that a big chunk of Baby Boomers want to move when they retire. Some want to downsize, others want to live in a small town or a big city when they didn’t beforehand. Moving in with their grown children is also something that many retirees are choosing, whether it be for convenience or because of a difficult financial situation. Unfortunately, Baby Boomers didn’t save for retirement like their parents did. If they did save, many lost a big chunk of their retirement savings over the past five years. On average, they have $500,000 less saved than they need for retirement. Without guaranteed pensions and with some people having lost equity in their homes, Baby Boomers are changing the face of how people retire.
One of the newest trends with this generation is retiring at a later age. Some Baby Boomers are staying in their chosen career longer to save more money for retirement. But a lot of them are choosing new careers following a passion or working with a pet cause. Whether part time or full time, the number of Americans working later in life is growing substantially. Baby Boomers are also increasingly technologically savvy. More than half of people 65 and over use the internet, most of them on a daily basis. Almost 3/4 of them use a cell phone and around 1/3 are on a social networking site. Baby Boomers use this technology to connect with loved ones and also to remain working later in life. The first group of Americans retiring in the 21st century are paving the way for the even bigger changes that will come when the next generation retires.
Written by Rachel Summit