Recession behind them, boomers retire in droves
Many baby boomers put off their retirement plans because of the ravages of the Great Recession. Now they're feeling more confident about quitting work.
This post comes from Karen Datko at partner site Money Talks News.
That scary time called the Great Recession caused many baby boomer to put off their retirement plans or go back to work. The sharply declining value of their investment portfolios and their homes made working longer a necessity.
Suddenly, in the last two years, the number of baby boomers dropping out of the workforce has taken a big jump, Bloomberg reports. It's one reason the U.S. jobless rate has dropped to 6.3 percent.
Why is this happening? It appears that after five years of robust stock returns, many boomers -- those born between 1946 and 1964 -- feel more comfortable about giving up work and careers and figure it's finally time to get on with the rest of their lives. We wish them well!
Things have gotten better for many people. Bloomberg says:
Household wealth in the U.S. climbed by $2.95 trillion in the final three months of 2013 to an all-time high. Average 401(k) balances almost doubled from 2009 to reach a record $89,300 last year, with 78 percent of the annual increase due to the stock market rally, according to Fidelity Investments, the U.S.'s largest provider of 401k retirement assets. For pre-retirees 55 and older, the average balance was $165,200, Fidelity said.
No doubt some of the boomers lost jobs, never found another again and are now scraping by with the help of Social Security. Some say the boomers' participation in the workforce has fallen simply because this massive population group is aging every year.
And let's not forget that many boomers are still working. Bloomberg says, "About 8 million people aged 65 and older are working, a 72 percent jump from a decade ago."
Still, it seems that many more boomers are feeling able to retire. USA Today reported earlier this year, "About 76 percent of those leaving the workforce in 2013 … represented people over age 55 who say they don’t want jobs, the Labor Department estimates."
Are you feeling more comfortable about your prospects for retiring?
More from Money Talks News
a) The 'great recession' has not ended.
b) It is NOT 'retirement' just because they haven't been able to find a job for 4 years.
I'm taking a break from my 5 year job hunt for a position requiring 40 years of accounting management experience so I can read and comment on this article while I eat my second bowl of store brand oatmeal today because I can't afford anything else.
I'm not retired. I'm unemployed.
They are retiring because they lost their jobs a few years back, can't find anyone to hire them because they are too old, then reach 62 years and hell yes they "retire" Obama care is too expensive to buy so they use their Social Security to buy it and live off investments/401K etc. If no investments/401K investment then they depend on their VA or just plain old welfare. Has nothing to do with "feeling confident" it's they simply need the money to survive until they can get on Medicare.
addendum to the original post:
c) Calling the people born from 1946 to 1964 as a single group ('baby boomers') is stupid.
A person born in 1946 was raised on 'howdy dowdy'. A person born in 1960 was raised on Vietnam war protests. A person born in January of 1946 could have gotten pregnant at age 18 and again at 19, and had 2 children that were also 'baby boomers'. Exactly what the phuck would those two kids have in common culturally with their mother? The era that is called the baby boom era produced two very distinct generations, with NOTHING in common culturally. So please don't try to pretend that it is one group. It only makes you look foolish.
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