The Baby Boomer Generation

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The Baby Boomer generation is one of the largest generations in American history, because of the size of the generation the Baby Boomer will have a huge effect on Social Security in America. There were over 76 million people born into the Baby Boomer generation which consists of anyone that was born from 1946 through 1964. Crain (2006) states that the birth rate in the United States between the years 1955 to 1964 never fell under 4.0 million each year. Due to the size of the Baby Boomer generation they had one of the biggest impacts on the twentieth century’s culture and history. Baby boomers were positioned in a unique way for the growth of the American economy in the second half of the twentieth century. The large size of the Baby Boomer…show more content…
The youngest of the Baby boomer generation will have reached the age of 67 by 2032. According to The National Academy of Social Insurance (2012) the number of people draining benefits to workers paying into Social Security, will rise from 35 per one hundred in 2011 to 49 per one hundred in 2035. The original Social Security program put into place in 1935 was designed for the typical family which included a working husband, stay-at- mother, the average Baby Boomer family is headed by two working parents. (Butruce, Iams, & Smith 2003/2004) The Baby Boomer generation will spend more years in the workforce and also have better education which will contribute to them having higher life time earnings. According to The Social Security Bulletin (2003/2004) Baby Boomer retirees will be better off than the current or near-term retirees. The fact of the Baby Boomer generation having higher education and degrees plus remaining in the workforce for longer contributes to higher life time earnings. The Family income at age 67 is projected to be higher for Baby Boomer retirees the for current retirees, per capita family income at age 67 will increase from about $29,000 for current retirees to $44,000 for early baby boomers. (Butrice, Iams, & Smith…show more content…
The decline of workers contributing to Social Security means there will be less benefits that will be replaced. Currently the Baby boomers have the highest labor force participation of any generations in American history. (Crain, 2006) The generations following the Baby Boomer generation will not have the numbers to replace the Baby Boomers place in the workforce. According to Crain (2006) nearly 90% of the Baby Boomer generation works, which is over half of the entire workforce in the nation. About 80% of female Baby Boomers worked which was also a contribution to the two income family. The higher percentage of two income families contributes to the simulation of the economy from purchases. Based on the financial planning literature provided by, The Social Security Bulletin (2003/2004), a fifty percent replacement rate represents a shortfall that could create economic challenges and necessitate lifestyle adjustments. The fifty percent replacement will not only have an effect on benefits but also the simulation of the economy. A little over a third of the current retirees but over two-fifths of near term and Baby Boomer retirees will replace less the three-quarters of their preretirement income. (Butrice, Iams, &Smith 2003/2004) The decline in replacements rates for Baby Boomers relative to those for current is
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