The Long Road Ahead for Baby Boomers

If you’re thinking seriously about retirement, then most likely you’re a member of the Baby Boomer generation. That means you were born at some point between 1946 and 1964, which currently puts much, if not all of that generation, right in that retirement sweet spot. However, given the havoc the Coronavirus has wreaked on the economy, you might be finding yourself rethinking your retirement plans. The reasons for this rethinking can vary. Maybe your nest egg took a hit in the market swings and you want to build it back up or maybe you lost your job and need a few more years of working to hit your goals. It could also mean working longer than you anticipated or it may mean entering retirement sooner than intended with a smaller nest egg. All these situations can be scary and disheartening. Furthermore, it might be harder to find jobs to work longer at, especially if you are out of work at the moment. If the 2008-2009 economic downturn taught us anything, it’s that the workplace can be unforgiving for older workers and that those in their 50s and 60s face a difficult road ahead when it comes to getting rehired. It’s likely that many jobs are gone for good and with the current numbers of unemployed persons, getting one of those positions might be much more difficult than in the past. There’s also the issue of pay. The pay cuts many took may take a while to come back or may put many in an eventual financial crunch. Lastly, the economy will not recover over night from the loss of spending and money changing hands (i.e. people with income buying goods). Those looking to retire in the coming years may not have the luxury of waiting for this to return to what they were before this pandemic hit. For those forced into an early retirement, they may not have the spending power to make luxury purchases often associated with retirement (i.e. vacations, a new car, etc.) and may instead keep their money in their retirement accounts and only spend on necessities. It’s hard to tell what exactly the long-term impacts will be on the economy and it certainly doesn’t mean everyone will be hard hit. It does mean, though, that if you are a Baby Boomer starting to think about retirement, that you be real about what’s going on in the world and the economy. It’s going to be a tough road ahead for Baby Boomers when it comes to the workplace and finances. For those hit hard by the recent economic downturns, it may take years to get back to where you once were, if you manage to get back at all. I don’t mean to be cynical, but that’s the facts. Again, I encourage you to be real about what’s going on and your own personal situation. If you need help doing so, I strongly encourage you to speak with a certified financial planner or wealth manager.