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Baby Boomers Plan to Keep Working |
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Unlike generations past, members of the Baby Boom generation don’t envision a point in their lives when they will cease to work and devote all of their time and energy to the pursuit of leisure.
The thought of leaving the work force appears foreign to affluent Baby Boomers, 75% of whom plan to continue working, at least on a part-time basis, beyond the traditional retirement age of 65. A Spectrem Group study of the retirement plans of affluent Baby Boomers – those born between 1946 and 1964 – shows 36% intend to work a reduced schedule, 27% plan to start a new career and 12% don’t expect to ever retire.Overall, Baby Boomers expect to retire much later in life than their parents did. Nearly half (48%) of the Baby Boom generation expect to work until they reach at least 65, an age at which 76% of their parents had already retired.
The intent of many Baby Boomers to work beyond the traditional retirement age of 65 coincides with the elimination of traditional retirement plans by many employers as well as heightened concerns about the long-term viability of the Social Security program.It is unclear whether these individuals have created income streams to support them during retirement. It is clear that these individuals need to plan for the future.Whether for economic or social reasons, Baby Boomers clearly plan to make work an ongoing part of retirement, altering the traditional view of how individuals should spend their later years.
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High Net Worth Advisor Insights Newsletter April 2008
