Question

1. What are some of the important factors that have influenced a typical baby boomer’s financial condition in his or her retirement years? Please list at least two.

Answer 1

Baby boomer is the generation born between 1946 and 1964. Baby boomers are retiring in large numbers with many not having enough savings.
The important factors that have influenced a typical baby boomer’s financial condition in his or her retirement years are as follows:
• Lack of proper planning for retirement
• The 2008 financial crisis
• The chronic low interest rates
• The stock market losses of the COVID-19 pandemic
• The stock market decline during Great Recession
• Many have been forced into retirement much before than planned. It's quite tough for the unemployed old workers to get back to their jobs.
• Falling income is also a major cause
• Declining retirement benefits
• The workers sign up for Social Security benefits earlier than planned which is resulting them receiving quite smaller monthly checks than they would have if they waited until the full retirement age to sign up
• The Corona Virus pandemic also caused financial crisis, no savings, hunkered down people, losing of jobs
• Too many other expenses
• Low quality of job
• Only half of working adults have access to an employer sponsored retirement plan and only 40% actually participate in it
• Other personal savings have virtually disappeared
• Income inequality, bank bailouts, bad markets
• Economic downturn
• No pension or retirement plans
• No savings