There are over 70 million baby boomers in the US. The older were born between 1946 and 1955. The younger between 1955 and 1964. Older boomers retire earlier. Why do young baby boomers put off retirement?
Younger boomers are often surrounded by generations of family. Many are helping to care for their aging parents, advising their adult children and trying to find time for their grandchildren. Often times they are helping to subsidize care for their parents while assisting their children with post-college debt and living expenses.
The older were presented with affordable housing, lower college costs, and a thriving job market. They saved for retirement and planned well into the future for things they’d enjoy when they retired at the age of 55-65.
The younger faced deep recessions early on. The workplace was over-crowded and outsourcing became the norm. They saved little for retirement and had no specific age in which to do so. They reached the prime of their careers at the same age their older counterparts were heading for Hawaii.
Younger boomers faced some of the lowest stock returns during their best, savings years. And only 33% can look forward to private-sector pensions.
Those born in 1960 and after must wait until age 67 to receive social security benefits and they cannot file a restricted application for spousal benefits, which would allow them to keep accruing their own benefits until age 70. Legislation has delayed their retirement.
Entrepreneurs, not retirees
With all these financial odds against them, will young boomers ever retire? In many cases, they’ll start over. At the tune of over 24% of new American start-ups. And this is where the grandkids come in.
They love to spoil their grands. But they also wish to assist their parents and write checks for their children. All that takes cash.
What was missing when they entered the crowded workforce is many times available later on. Start-up costs are well within reach and some of their grandchildren are old enough and eager to pitch in.
Gone are the days when many Americans started and maintained the family business but perhaps some young boomers are ready to bring it back and hand it off to their grandchildren. That’s when they’ll retire.