Retirement Blog

Finance Blogs » Retirement Blog » 10 trends boomers will drive

10 trends boomers will drive

By Jennie L. Phipps ·
Monday, January 27, 2014
Posted: 4 pm ET

If you're a boomer like me, you know that you've never done anything that you didn't do in a crowd.

Frank Newport, editor in chief of Gallup and a boomer himself, pointed out that the large number of post-World War II births from 1946 to 1964 were "like a pig moving through a python, having an impact on society at every stage of their lives."

And now as they pass the age 65 benchmark, the age at which people have traditionally embraced retirement, he predicts boomers will continue to have a dramatic effect on virtually every aspect of American life. Here are 10 areas that he thinks aging boomers will turn upside down, changing retirement planning forever.

  1. Social Security and Medicare. Boomers are living longer than any generation before them and actuaries believe the number of people claiming benefits from these two programs will double in the years ahead. Since both of these programs are pay-as-you-go, relying on younger generations to pay for those who are already retired, Newport says this isn't great news for the younger generations who will be supporting boomers in their old age. Who will pay more or who will get less?
  2. Health care. The pharmaceutical industry will find it profitable to make more drugs that treat the ailments of aging, such as Alzheimer's, hearing and vision problems, heart disease and cancer. Nursing homes and other care facilities will expand. Physicians and others who specialize in gerontology, the treatment of elderly people, will be in demand. Also, funeral directors likely will be very busy.
  3. Religion. If boomers are anything like the generations that have come before them, they'll grow more spiritual the older they get, creating an increased demand for religious and spiritual leaders and experiences.
  4. Travel and vacation. People without full-time jobs or other commitments often have the urge to travel. It is unlikely that the boomer generation will be any different, creating opportunities in the transportation, hotel and tourism industries. Newport thinks that there will also be growth in the education market -- boomers will travel to take courses in things that interest them.
  5. The legal industry. Not only will boomers be making wills and setting up trusts, they'll also be dying off, leaving those behind to engage in legal disputes over what they have or haven't been left.
  6. Charities, legacies and volunteer work. Boomers will have time on their hands to work for no pay for the causes they care about, and some of them will leave those causes considerable sums of money.
  7. Promoting causes. Not only will boomers give time and money, they'll also give their votes and their emotional support to the causes they believe in. Newport speculates that because so many boomers grew up in a period of history when social protest had an enormous impact, many of them will again embrace this method of achieving change. "We could well see the new phenomenon of 'boomer protests' in the years ahead," Newport says.
  8. Housing industry. If boomers would all decide to sell their homes and move elsewhere, this could create a flooded market for suburban houses. The upside is that this could create a huge market for innovative retirement communities in attractive places, including college towns, warm weather havens and big cities.
  9. Dining out. With money to spend and nobody at home to cook for, empty nesters will be filling their bellies at restaurants and carry-out establishments.
  10. Financial advice. Lots of boomers aren't poor. In 2013, Gallup calculated that boomers ages 50 to 64 spent an average of $93 a day. Younger seniors who are 65 to 74 years old spent an average of $87. This is much more than millennials, ages 18 to 29, who spent just $73 a day. Helping boomers figure out how to manage income in retirement will undoubtedly be a great  industry in which to work.

Newport concludes, "It's a brave new world ahead for boomers as they age past 65, and also for the U.S. as a nation."

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
William Culp
January 29, 2014 at 12:16 pm

I am now 69 years old and I feel I paid into my social security for almost 50 years before I was forced to retire at 65. I was paying for older persons SS when I was younger and do not see why it has become such an issue now that younger people pay for the older people. I would be more than happy to stop collecting my SS benefits (which I earned) if all that I paid in was returned me at a modest 3 percent interest. Also why is medicade and welfare never spoken about like SS? Welfare is apparently in no danger of "running out" of funding and everyone who is working is paying for it. Most boomers worked, served in the military and were productive tax paying citizens all of their lives, it hurts to now be considered a "burden to society".
Not like the government was not aware "boomers" were getting older and would someday retire. How does that old saying go? "lack of planning on your part should not create an emergency on our part".
my 2 cents

January 29, 2014 at 9:15 am

John hit the nail on the head.............see, you are still in existence and if you did not plan you are going to regret others foresight as they enjoy the fruits of listening to and following sound advice from those who did not plan and have been unable to retire due to spending all or even more than all(borrowing)of possible retirement funding. My one request: KEEP YOUR HANDS OUT OF MY POCKETS!!

David G.
January 29, 2014 at 9:01 am

If your husband isn't receiving Social Security he should be, at 66 you could receive 1/2 of his payment thus allowing your eventual Social Security payment to max out. This works in a number of different circumstances.

If you and your husband are on Medicare there should be some allowance for Mental Illness care and if you are signed up for Part D the drugs that might be necessary should be covered.

Deborah Finnegan
January 29, 2014 at 7:04 am

I am almost 67. Wondering if there is any help, program or
other resource for a couple in which the husband has mental illness, which is not visible, but keeps him from working. We are desperate for more income - I work, but is not nearly enough. Maybe I just don't know where to look, but I see no programs for the mentally ill spouse who had been the main breadwinner, and is now unstable. Not bad enough for an institution, he has a doc who gives him medication, which is only slightly helpful. Anyone know of a resource in government or other, who could help a mentally ill spouse?