Baby Boomers make up a big part of the population but as they get older, there are a lot of things about them that might surprise you. First and foremost, it’s important to define exactly what the term means, especially for people that haven’t grown up hearing it. More specifically, Baby Boomers are defined as those individuals who were born between 1946 and 1964. Obviously, this is a population that is aging rather quickly, especially for those individuals that were born during the earlier portion of this time frame. What might surprise you are the following 10 financial facts that apply to Baby Boomers in general. Obviously, these facts don’t apply to every individual but they do apply to the overwhelming majority of people that fit into this category.
1. They don’t have enough money saved up for retirement
On one hand, this is almost hard to believe, especially when you consider the fact that the largest generation in American history hasn’t saved enough money for retirement as a whole. On the other hand, that very generation that did so much to shape the financial economy and the politics of America has also faced a number of changes over the years. Some of them didn’t save enough for retirement because of frivolous spending but the overwhelming majority of them have found that they are victims of a dramatic increase in costs that they just didn’t expect.
2. Most of them are still working
As a direct result of not having enough money saved for retirement, only about one-third of this generation actually anticipates retiring before the age of 65. The other two-thirds of the population plans on continuing to work at least until they are 65 years old and possibly beyond.
3. You’d be surprised how many of them own businesses
So many people equate Millennials with being entrepreneurs. It’s important to note that people were starting businesses of their own long before the millennial generation ever came along. If you’re looking for a particular generation that owns the most businesses in America, you need look no further than the Baby Boomers.
4. They make up much of the workforce
When you consider how large this particular generation is, it shouldn’t surprise you to know that they still make up roughly half of the workforce in America. This is good news because they have an outstanding work ethic and they’re at that point in their lives and careers where they have a desire to teach others everything they’ve learned.
5. Some of them have managed to save a great deal of money
Even though roughly two-thirds of the generation hasn’t saved enough money for retirement, the one-third that has have managed to save a lot of money. In fact, they are largely responsible for about 80 percent of the money that is in most savings accounts.
6. They know how to reward themselves
Baby Boomers have a tendency to spend more money on automobiles than other people, largely because they purchase newer cars more frequently. They don’t have a tendency to drive their cars for more than a few years at a time and they hardly ever purchase used automobiles.
7. They like to travel
Not only does this generation enjoy traveling, but they know how to do it in style. When it comes to luxury travel, only about 20 percent of the industry is paid for by someone that isn’t in the Baby Boomer generation.
8. They stick with things they like
When they find a brand that they like, they’re not likely to change. For example, a Baby Boomer that likes Fords is probably not going to suddenly start driving a Toyota or Chevrolet. The same is true for virtually every other brand of product. Once they find something that they know they can trust, they don’t have a tendency to go looking elsewhere.
9. They’re constantly spending more money
This isn’t really because they choose to spend more money year after year. It’s more a product of the economy. Everything costs more money these days, from groceries and gasoline to houses and credit cards. As a result, it’s anticipated that over the next several years, they will have to spend almost 60 percent more money than they do right now. This is largely why many of them don’t have enough money for retirement and are still working.
10. They’re worth listening to when it comes to money matters
Despite the fact that some of them struggle, the ones that have it figured out have about 70 percent of the nation’s disposable income at their fingertips. Therefore, they’re worth listening to when they talk about anything related to finances.