Boomers Are Rewriting Retirement Rules

For better or worse, Baby Boomers have made an indelible mark on the American landscape in almost every way. Now, as more and more are reaching retirement age, boomers are rewriting retirement rules.

Boomers are rewriting rules of retirement, just as they’ve done for everything else over the last 50 years.

Boomers are rewriting retirement rules

What does retirement have in store for Baby Boomers? It may not be what you expect, but you can be sure that whether you’re part of that generation or another, what boomers do will affect you. Here are some of the developing trends.

More older Americans are packing it in for foreign countries, where they can save on living costs and enjoy warmer climates.

Almost a quarter – 21 percent – of new U.S. businesses started in 2011 were launched by entrepreneurs age 55 to 64, according to the Kauffman Foundation, up from 14 percent in 2007. Entrepreneurs age 45 to 54 accounted for an additional 28 percent of the 2011 startups.

…23 percent of older boomers and 27 percent of their younger siblings use tablet devices, compared with 30 percent of Gen Xers (born 1965 to the early 1980s), according to the Pew Internet Project. The gaps also are small when it comes to smartphones and social networking services.

Older Americans are taking more debt into retirement than previous generations. Mortgage debt is the biggest factor: Forty percent of homeowners over age 65 had mortgage debt in 2010, compared with just 18 percent as recently as 1992, reports the Joint Center for Housing Studies at Harvard University (JCHS).

Life expectancy for men has jumped an average of almost two years in each of the last five decades, to 75.7 years in 2010, according to the Society of Actuaries. For women, life expectancy has risen by 1.5 years, on average, to 80.8 years.

Some 58 percent of boomers are providing financial assistance to aging parents, such as helping them purchase groceries or pay medical and utility bills, according to an Ameriprise Financial survey of just over 1,000 Americans conducted in late 2011.

When it comes to their kids, boomers are even more ready to help out. Almost all boomers surveyed – 93 percent – say they have given their children a hand. A majority have “boomerang kids” who have moved back home to live rent free (55 percent) or afford a car (53 percent).

Not surprisingly, most of these trends involve money in some way, spending less by retiring abroad, starting a business to provide work — and income, retiring with more debt and providing financial assistance to both children and aging parents — which may also explain the debt.

Wherever you are in life and whatever your expectations, you can be sure that — just as they’ve done with everything else — boomers are rewriting retirement rules as well.

Click here to learn more about how boomers are rewriting retirement rules.

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