The great baby-boomer retirement wave is upon us. According to Census Bureau data, 44% of boomers are at retirement age and millions more are soon to join them. By 2030, the largest generation to enter retirement will all be older than 65.

The general assumption is that boomers will have a comfortable retirement. Coasting on their accumulated wealth from three decades as America’s dominant economic force, boomers will sail off into their golden years to sip on margaritas on cruises and luxuriate in their well-appointed homes. After all, Federal Reserve data shows that while the 56 million Americans over 65 make up just 17% of the population, they hold more than half of America’s wealth — $96.4 trillion.

But there’s a flaw in the narrative of a sunny boomer retirement: A lot of older Americans are not set up for their later years. Yes, many members of the generation are loaded, but many more are not. Like every age cohort, there’s significant wealth inequality among retirees — and it’s gotten worse in the past decade. Despite holding more than half of the nation’s wealth, many boomers don’t have enough money to cover the costs of long-term care, and 43% of 55- to 64-year-olds had no retirement savings at all in 2022. That year, 30% of people over 65 were economically insecure, meaning they made less than $27,180 for a single person. And since younger boomers are less financially prepared for retirement than their older boomer siblings, the problem is bound to get worse.

As boomers continue to age out of the workforce, it’s going to put strain on the healthcare system, government programs, and the economy. That means more young people are going to be financially responsible for their parents, more government spending will be allocated to older folks, and economic growth could slow.

  • SpringMango@lemmy.world
    link
    fedilink
    arrow-up
    58
    ·
    10 months ago

    My father has Parkinson’s and my mother, who was his primary caregiver, passed a few months ago. They went from being comfortable with their finances and having a small, but nice home, to my father now going into a nursing home and likely lose everything he owns because of how expensive nursing care is. We are looking at $7k a month with zero assistance from Medicare and he has enough money that he doesn’t qualify for Medicaid but will burn through all his assets in just a short time. It’s ridiculous that people work hard and save and it’s all gone in a flash.

    • fidodo@lemmy.world
      link
      fedilink
      arrow-up
      26
      ·
      10 months ago

      Let the debt die with him. Get that house into a trust, or out of his name however you can. Don’t let greedy corporations steal the generational wealth he worked hard for and surely wants to pass on, and not have taken away by the health care industry. A few grand on lawyers and accountants now will save you hundreds of thousands down the line.

    • Socsa@sh.itjust.works
      link
      fedilink
      arrow-up
      21
      ·
      10 months ago

      Your father needs to put his assets into a trust ASAP then. Once he divests through the trust he will qualify for Medicaid. It’s unfortunate that we need to jump through these hoops, but it is what it is.

      • fidodo@lemmy.world
        link
        fedilink
        arrow-up
        13
        ·
        10 months ago

        I’ve seen it go both ways. Things are so much better for the kids when assets are in a trust. Without it, I’ve seen people lose everything. Don’t give the dirty debt collectors a dime.

    • hark@lemmy.world
      link
      fedilink
      arrow-up
      19
      ·
      10 months ago

      Sorry to hear about that. This is one reason why I wonder if it’s even worth saving for the future. Live the best life you can in your prime years and then let the pieces fall where they may in the end. You’ll qualify for more programs if you didn’t bother saving anyway.

      • fidodo@lemmy.world
        link
        fedilink
        arrow-up
        5
        arrow-down
        1
        ·
        10 months ago

        If you want to pass on generational wealth you need a trust. It keeps those assets protected, and once you die the debt dies with you.

      • CeruleanRuin@lemmings.world
        link
        fedilink
        English
        arrow-up
        4
        ·
        10 months ago

        Assuming those programs still exist by the time you get to that point.

        If the oligarchs continue to get their way, those programs will disappear. It doesn’t serve them to have a class of people whose labor or income they can’t exploit.

      • monkeyslikebananas2@lemmy.world
        link
        fedilink
        arrow-up
        14
        arrow-down
        12
        ·
        10 months ago

        If you’re 40 or under it isn’t worth saving. Retirement is a Myth for Millennials onward. Unless we get UBI, everything is going to go tits up anyway.

        • btaf45@lemmy.world
          link
          fedilink
          arrow-up
          6
          arrow-down
          1
          ·
          10 months ago

          If you’re 40 or under it isn’t worth saving.

          That is precisely the best time to save and invest.

          • monkeyslikebananas2@lemmy.world
            link
            fedilink
            arrow-up
            2
            arrow-down
            2
            ·
            10 months ago

            If you believe the same retirement options that were available for boomers is realistically available for younger people, I have a 401k to sell you and a Social Security check is in the mail.

            Without significant changes to the way we handle our economy no amount of savings now will make up for the shit that’s coming.

            That being said, it should be noted I have a good paying job, I have a 401k, I have investments and none of that is going to carry any of us through to the retirement expectations that we’re being sold.

            If you’re under 40, between automation and climate change, shit is going to get real very quickly.

        • Sagifurius@lemm.ee
          link
          fedilink
          arrow-up
          5
          arrow-down
          3
          ·
          edit-2
          10 months ago

          How does giving everyone a UBI solve that we can’t afford to pay the old pensions now? Gonna tax the UBI to pay for it?

          • 31337@sh.itjust.works
            link
            fedilink
            arrow-up
            3
            ·
            10 months ago

            Dunno your country’s specifics, but in the U.S., the eventual social security deficits could be completely resolved by removing the caps on social security contributions.

            UBI could be payed for by a radically progressive tax structure similar to the U.S. tax structure in the 1950s.

            • Sagifurius@lemm.ee
              link
              fedilink
              arrow-up
              1
              arrow-down
              2
              ·
              10 months ago

              I’ve looked that structure up before, it only worked if you paid yourself. They just plowed all the money straight back into business expenses or acquisition.

              • 31337@sh.itjust.works
                link
                fedilink
                arrow-up
                1
                ·
                10 months ago

                In the U.S., the difference between average and median income is ~$25k/yr, so, if my logic is correct, it should theoretically be possible to have an UBI of $25k/yr (which would bring the average income on top of UBI down to around the median).

                • Sagifurius@lemm.ee
                  link
                  fedilink
                  arrow-up
                  1
                  arrow-down
                  2
                  ·
                  edit-2
                  10 months ago

                  Well, I’ll give you this. Most communists don’t actually admit they want to drag everyone down to their level. The honesty is refreshing. That’s not sarcasm, this is rare as hell.

          • stoly@lemmy.world
            link
            fedilink
            arrow-up
            4
            arrow-down
            1
            ·
            10 months ago

            Think of it as the circle of life. It’s basically what powered the Boomers–all those freeways and suburb projects put money in their pockets. You give UBI and you drastically reduce homelessness, allowing more people to participate in the economy. Those with good incomes won’t notice the UBI but for those without, it will save their lives.

              • stoly@lemmy.world
                link
                fedilink
                arrow-up
                3
                arrow-down
                1
                ·
                10 months ago

                Yet it has worked wonders everywhere it has been tried. Don’t mix up your hatred for taxes with the viability of public programs.

                • Sagifurius@lemm.ee
                  link
                  fedilink
                  arrow-up
                  1
                  arrow-down
                  3
                  ·
                  10 months ago

                  Yeah…I’m not American. “Works wonders everywhere it’s been tried” is a bit of an exaggeration, I’ve seen how this sort of thing goes.

    • CeruleanRuin@lemmings.world
      link
      fedilink
      English
      arrow-up
      1
      ·
      10 months ago

      Because the system isn’t designed to work for even the upper middle class, or even the comfortably independently wealthy. The system is designed to continue diverting all of that hard work’s rewards towards the wealthiest tier of wealthy.

      Nobody is safe from this vampirism, not even those who would call themselves rich. As it is, wealth will always siphon down to the parasites at the bottom. We’ve all been fooled into thinking we’re at the bottom of a pyramid (or, if you’re lucky, somewhere in the middle), but it’s really just a funnel, sucking everything down to a single point.