- Posted on February 03, 2020
- Financial Terms
- By Glory
This is a term used to describe people who were born between 1946 and 1964. The baby boomer category represents a large portion of the world population and has a significant impact on the world economy. In America for instance, this category represents nearly 20% of the population.
In the United States, baby boomers were the largest generation until the millennial race became slightly more than the baby boomer. However, baby boomer has continued to have a tremendous impact on the economy of the nation. This is why most times, they are the focus of the business plans and marketing campaigns.
History Of Baby Boomers
The term "baby boom" came up after World War Two, there was a significant leap in birthrate such that in the United State alone, more than 77 million babies were born. This is why the period is known as the baby boom period. The boom gave birth to about 40% of the entire population of the United States.
Historians explained the rise in birthrate to the aftermaths of the war. Families who suffered the loss of their loved ones during the war aimed at growing another. Also, there was a sense of confidence that the new world would be safe and secured. Factors such as grief, anxiety, and depression also gave rise to the boom in the birthrate. Also during the period (1940 -1950), there was a general increase in wages and salaries, availability of consumable products, and business generally.
Many families also migrated from their cities to the suburbs. In fact, the G. I Bill allowed military personnel returning from the war to buy affordable homes around the edges of the cities. This brought about the suburban ethos that sees men as the provider for the family and the women as the housekeeper.
Also in the period, suburban families were allowed to use a new form of credit to buy household appliances, cars, and other goods and products for their general wellbeing. However, as the baby boomers approach adolescents, many of them became dissatisfied with the way of life in the suburban area. Their dissatisfaction gave birth to the youth counterculture movement of the 1960s.
The baby boomers grew up to pay a significant amount of social security tax that was used to settle their parent's retirement. However, today many of the baby boomers are retired and many are still retiring.
From the recent report by AARP, though the baby boomers are aging fast, they still continue to hold very significant power in the economy of the nation. For instance, the amount spent on goods and services by baby boomers alone is about $7 trillion per year. In relation to the impact of the baby boomer on the wealth of the nation, it was gathered that 80% of the country's personal net worth is owned by the baby boomers. The youngest of the baby boomers as of 2019, are in their late 50s.
Why Baby Boomers Retirement Is Different
The first generation of baby boomers became eligible for retirement in 2012. Their post-work experience is significantly different from that of their parents. The baby boomers are the members that make up the greatest generation group.
The prosperity of the country after World War II contributes to the difference in the retirement of the greatest generation. Many people from this generation were able to retire at the age of 65 and benefited from a workforce in which there were six employees for retirement. This also contributed to the long retirement period of the baby boomers.
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