The baby boomers were born in an era of wealth and opportunity. The embers of the Second World War were cooling, the national employment rate was high as Europe set about rebuilding, driving demand through the roof.
But those days have gone. Now, as the baby boomers are retiring, they face tough challenges, caused by a fluttering economy and deteriorating health. These are the fiercest challenges currently facing the aging population.
Long-Term Care
As the aging population comes up against age-related illnesses and diseases, many are entering long-term care facilities. This long-term care throws up a host of financial and logistical challenges.
Firstly, the aging population are having to consider this care in their saving plans for their retirement. The average couple now has to spend around $275,000 on healthcare. This will have to come from somewhere, be it insurance plans, retirement funds, or personal savings.
Additionally, the number of baby boomers requiring long term care will slowly overtake the supply of care facilities. On a macro-level, the government will need to take measures to ensure there are adequate long-term care facilities with trained staff to offer a high-level of round-the-clock care.
Asset Protection
As we approach old age, one of the single biggest concerns is how to protect our assets. As mentioned, healthcare can be a real drain on finances. Couple this with the cost of probate and inheritance tax, and a sizeable portion of our assets will be taken away from our children.
Baby boomers can take steps to protect their assets at any stage of their life. It doesn’t have to happen in retirement. ProtectYourAssetsGA.com offers information on how you can protect your assets in the probate courts and ensure you best interests are protected.
Being Able to Afford Retirement
Although baby boomers were the most prosperous generation in history, rising living costs and inflation has left many with insufficient savings to maintain their standard of living into retirement.
Nearly 50% of all Americans over the age of 50 have $25,000 or less saved for retirement. This means many will be forced to work past the age of 65. Only 23% of baby boomers believed they had enough saved for their retirement.
With social security falling and federal safety nets being dismantled, many Americans now face the difficult question of how they will support themselves when they are no longer able to work. Working longer is one option, but many jobs are unsuitable for someone entering their 70s. They may be physically demanding or, as automation increases, require new technical skills that may not be easily learnt in aging citizens.
These challenges will drastically alter the way Americans think about aging in the next generations. As millennials grow up watching their parents grapple with these challenges, perhaps they will develop solutions.
Either way, the national workforce and healthcare industries are on the cusp of major changes as the population ages. These woes and problems are not going away. We are just going to have to learn to deal with them as a nation.
