8/13/2019 The Baby Boomers worry
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The Baby Boomers worryThe Baby Boomers worryThe Baby Boomers
worryThe Baby Boomers worry
Across the Western industrialized world baby boomers reach
retirement age and this
generation, born between 1946 and 1964, in fact deserves its
label. They are many and
were born into a happy time. Also their countries economies
boomed recovering and
rebuilding after World War II. For the major part of their life,
the GDP enjoyed sound growth
and paychecks rose from year to year. Work was available in
abundance, and many
countries called upon foreign workers to fill the shopfloors.
Life was pleasant, providing the
fruits of small technological revolutions in plastics and
electronics. Until today baby boomers
cherish their cars, houses, and vacations travelling to foreign
soil.
However, they are worried. In 2008 Pew Research described how
surveys revealed thatUS-American boomers were experiencing a gloomy
mood. Like their counterparts in many
industrialized countries they are at the peak of their earnings,
but retirement is in sight and
the festivity of this event is a special one in the history of
generations. Many of them will
invite their still living parents and it is not uncommon to find
members of four generations
sitting around the table at such an occasion.
Longevity is, of course, a blessing. Around the world it
expresses the advancement of
hygiene, medical progress, economic stability, and that wars
have been fought on a limited
scale. A detailed World Health Organization analysis from 2005
shows that especially in
developing countries life expectancy expanded. Life expectancy
in these countries rose byapproximately 24 years since 1950; where
developed countries gained 10 years. In fact, the
few countries not within this worldwide trend towards a longer
lifetime are still fighting
medical problems affecting the entire population, such as the
AIDS epidemic in certain
African countries, or are coping with severe structural economic
incisures, like the countries
having emerged out of the break-up of the former USSR.
But the boomers have reasons to worry and their own parents
exemplify the problems to
come. Income in the form of pensions will be much lower,
investments in property and
financial markets may not pay off as well as expected, and
inflation will drive up living costs
along with increasing medical expenses. After some good years,
for those who can afford itwith travelling and cultivating of
hobbies, for many a place in a home for the elderly will cost
per month more than they earned in their best days. Around US$
3.000 is in Europe the
average monthly rate, medical services excluded. Pension systems
differ considerably
between countries, but the states will have to subsidize such
costs for many in need of these
services.
Pensioners with tight budgets often have to find creative
solutions to get along. First, and
that is true for all, they consume less. Second, they often move
into smaller apartments and
some of them even to cheaper countries. European pensioners
migrate to countries like
Turkey and Thailand, at least as long as health care there is
regarded as sufficient.
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In addition, the crises have had a dangerous demographic
side-effect. Younger people leave
the financially instable countries looking for jobs abroad.
Young Greeks and Spaniards have
discovered that Germany might be more hospitable than prejudice
commanded, young
Portuguese venture to Brazil and Mozambique. The Brazilian state
Acre with its porous
border to Ecuador declared an immigration emergency recently
flooded by people who
have travelled from as far as Senegal. If migrants will return
one day and later pay into the
social system of their former home countries remains an open
question. Most likely not to
return are the approximately 110.000 scientists, intellectuals
and businesspeople which left
Greece in the last year. The observation that the best go first
holds true for companies as
well as for countries. The countries of the developing world
experience and suffer from this
drain for decades.
With a time perspective of up to three decades to come, Baby
Boomers need to worry. Formany of them the standard of living in
these years will significantly fall behind what theyenjoy now. The
question of a fair sharing of financial burden between the
generationsfocuses on their entitlements. The best is still to
come? Not for all of them.
Baby Boomers: The Gloomiest
Generationwww.managing-essentials.com/3cs
World Population Ageing: 1950-2050 (Analysis by the United
Nations)www.managing-essentials.com/3ct
Baby boomers: powerful and selfish (Francis
Beckett)www.managing-essentials.com/3cu
Hey Kids of Baby Boomers, Forget About Your Inheritance (Brad
Tuttle)www.managing-essentials.com/3cv
Boomers vs. Millennials: Whos Really Getting Robbed? Michael
Winerip)www.managing-essentials.com/3cw
Brazilian state of Acre in illegal immigration alert (BBC
staff)www.managing-essentials.com/3cx
