4 Overlooked Opportunities of the Baby Boomer Bomb

Recently I heard on the news that over 10,000 baby boomers are turning 65 each day. The amazing part is that this will continue for the next 19 years! Ten thousand baby boomers reaching 65 each day spells opportunity to me.

Here’s what I mean. A huge shift in the age of America will affect everyone in ways they may not have realized before. As I thought about the changes, I figured there would be at least four big opportunities that come because of the shift in age.

Jobs are Coming Available

As the baby boomers retire from work, their employers are now free to hire replacements or create new jobs that are more tailored to the younger workers. This is good news for those who are between 20-40 years old.

Not only will jobs open up, they will also be created to meet the increased demand in specific sectors. Areas like health care, financial management, travel and entertainment, and technology are poised to soar because of the extra attention from the baby boomers.

Homes are Going on Sale

I particularly hope this is true. It makes sense that the housing market might see a spur in larger homes coming available as retirees downsize for their retirement years. Hopefully this means a great family home for cheap in the coming years.

Workforce is Changing

Just because people are turning 65 doesn’t mean they’re retiring. The workforce landscape is changing and the older generation is mixing forces with the younger workers. Why would someone retire when they can go back to school and start a second career in a field they’ve always wanted to explore?

Increased Retirement Savings

I hope this is true. If you’re a baby boomer who hasn’t saved enough for retirement, don’t give up! If you’re at the bottom of the group, you have 19 years before you hit 65. Nineteen years is a long time to build a savings. Even if you only have 15 years, you can max out IRAs for you and your spouse and still have almost $300,000 (assuming a 6% return). If you’re in a position to max out both IRAs and a 401(k), your retirement account can still inch to a million with enough time.

I’m hopeful for the coming years and the opportunities that are available for the baby boomers as well as the next generation.

Can you think of any other opportunities that may come available? Any thoughts about those mentioned above?

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  • http://www.AdventureRetirement.com Bill Birnbaum

    Yes, I think you’re correct… baby boomers downsizing will put many larger homes on the market. This will put downward pressure on the prices of those larger homes. At the same time, however, there will be upward pressure on the prices of smaller homes. Bill

    • http://www.patheos.com/blogs/faithandfinance Tim

      Thanks for commenting Bill. Good point about smaller homes. Sounds like a good plan to me…buy small, sell for a premium and buy a larger home at a discount. If it only worked that easily.

  • http://www.417marketing.com Nick Altrup

    Home prices are headed down, down, down. We haven’t come close to seeing the bottom, particularly if you adjust for recent and future inflation. The combination of baby boomers selling and banks giving up hope and unloading cheap foreclosures will kill home values, sending them tumbling down once again. I predict a 20% or more drop (short-term inflation adjusted) in the next 12 months. Heck, the next 9 months. This is great for some, and not so great for others. It just is what it is.

    Man. I’ve really been a Debbie Downer around here lately, huh? I don’t mean to be. Keep up the great work, Tim.

  • http://www.thestewardshipsolution.com Derrik Hubbard, CFP

    One opportunity I hope to see as more and more baby boomers retire is that they move into positions of volunteering and service in a way that will share their accumulated wisdom with those around us.

    It would be a shame for them to retire to a life of careless ease, instead of using it as a time of transition to invest in the lives of others.

    • http://www.patheos.com/blogs/faithandfinance Tim

      Great response Derrik! I hope to see that as well – there’s so much to learn from those before us!

  • http://newfromclt.blogspot.com/ Randy

    One thing I worry about, but have seen nothing written about, is all of the money retirees take out of the investment market. As this money is pulled out and used for life expenses, what will happen to the overall market?

    Maybe too deep a thought for Monday morning…

    • http://www.patheos.com/blogs/faithandfinance Tim

      That’s a great question. Without looking too deeply into it, I would hope that the transition is gradual. If the stats are right, we’re looking at a transition period over the next 20 years, and I think the market can adjust (still providing overall positive) if the changes are gradual.

      The other problem I can think of is that baby boomers may feel the need to be even more aggressive in order to ‘catch up’ and this may not play well with the thought that they’ll gradually move out of the market.

      Thanks for commenting!

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