There was a colossal rise in the birth rate after the Second World War. These babies were dubbed the Baby Boomers and they are the babies born between around 1946 and 1960. This means that the first Baby Boomers became pensioners in 2011 at the age of 65.
It should be noticed that when the first Baby Boomers came of age, they produced the changes in civil and human rights and discrimination associated with 1968. They also fashioned the Hippy Movement, Flower Power and the Sexual Revolution. So what will ensue when they become pensioners?
The Baby Boomer generation is the wealthiest generation ever, but they have never felt the drop in earnings, status, health and mobility associated with older age, so it is likely that there will be some sort of pensioners’ pressure group.
About 22% of the American population are Boomers, which means that there will be tens of millions of individuals retiring over the next ten years. This has several important consequences. The first one is for health care; the mass retirement could or almost certainly will put the health care system under massive strain.
The second one is employment. Because the Boomers’ generation is the largest sector of society, when they retire, there will be a shortage of labour. After all, if the Boomer generation is the biggest portion of society, then by definition the following generation must be smaller.
These figures are roughly the same for all Western countries and it almost certainly accounts for why there is a rush in Western countries to permit immigration. Firstly, immigrants will take up the slack in the workplace and second, their taxes will assist pay for all the old Boomers.
So, with any luck, neither the state finances nor the Boomers’ health will suffer, but what other effects might this mass retirement have? Well, there could easily be a huge increase in demand for retirement homes both in one’s native country and abroad. Baby boomers are prolific travellers and many may want to retire to warmer countries or warmer parts of their country.
The southern states, provinces or counties of Western countries in the northern hemisphere and warmer countries in general, like Thailand, Spain and Italy could see a boom in retirement housing. The construction industry might receive a much needed shot in the arm.
Most Western governments and many private construction firms already have plans and even dynamic projects to satisfy this need for retirement housing when it starts to kick in. If the Boomers make a mass exodus out of the cities into the countryside or to the seaside, it could free up millions of inner city residences and at the same time make plenty of construction work outside the cities. But not just that, millions of additional jobs will be created in support and service staff positions.
The aging of the Baby boomers could be just the boost that most failing Western economies require to get back on their feet after the banking crisis of 2008-2010. Let’s hope so.
24 JunBaby Boomer Retirement
15 MarThe Reverse Mortgage Association: Answers For Seniors
The National Reverse Mortgage Lenders Association was established in 1997 to provide a variety for services for both those wishing to take advantage of reverse mortgages on their homes and lenders wishing to finance reverse mortgages.
The Reverse Mortgage Association has an educational program to aid senior citizens who have decided to take out a reverse mortgage as a way to remain financially independent The Reverse Mortgage Association has also established a Code of Conduct to which it expects reverse mortgage lenders to adhere in their dealings with senior citizens; it also has a training program in which reverse mortgage lenders are encouraged to participate.
How Reverse Mortgages Work
The Reverse Mortgage Association oversees a program in which homeowners sixty-two and older can turn a percentage of their home equity into non-taxable income while still retaining title to their homes. They are freed of the burden of a monthly mortgage payment, which they would otherwise have to accept by taking out a traditional home equity loan. The Reverse Mortgage Association oversees the activities of lenders who make the reverse mortgage payments to the senior homeowners.
A reverse mortgage does not have to be paid back until the home is no longer the borrowers’ principal residence, the borrowers pass way, the home is sold, or the borrowers leave it for good. And it the home is sold for an amount greater than the outstanding balance on the reverse mortgage, the borrowers, or their estates, can keep the difference. For more info see http://www.i-reversemortgages.com/Reverse_Mortgage_Information/ on Reverse Mortgage Information.
The Future Of Reverse Mortgages
With the Baby Boomer generation now entering their 60′s, the number of reverse mortgage loans is expected to increase dramatically. Because of that, it is more important than ever those senior citizens can trust the integrity of their lenders. The Reverse Mortgage Association has the job of verifying the quality and professionalism of reverse mortgage lenders and assuring that they will be an asset to the communities in which they do business.
The Reverse Mortgage Association holds a series of annual conferences for its member lenders, so that they can remain educated in the latest reverse mortgage issues, products, and borrower concerns.
For seniors who have been caught in the trap of dwindling IRA values, disappearing pensions, and rising health insurance costs, the idea of trying to survive in retirement on Social Security and little else may be devastating. A reverse home mortgage, from a lender who honors the Code of Conduct established by the Reverse Home Mortgage Association, could give them the secure retirement for which they are longing.
You can also find more info on Reverse Mortgage Lender and Reverse Mortgage Loans.