The Baby Boomer generation refers to those born between 1946 and 1965. Though they are the oldest of these generations, they do not display characteristics traditionally associated with seniors, and remain healthy and highly active, both socially and professionally, well beyond retirement age.

Boomers worldwide make up an unprecedented percentage of the population. In the U.S alone a quarter of the U.S. population, and control $3.2 trillion in spending power.

 

How Boomers Differ from Others

Having been raised in front of television sets, Boomers have been marketed to for the duration of their lives, and as a result, are known as the ‘consumer generation’.

Boomers are quick to spend a dollar or two, and are extending their consumer-driven habits into their golden years, which has served to significantly expand and direct the market.

At this stage in their lives, Boomers now have the time and energy to spend their money, and prefer to do so in fun, exciting ways.

 

Understanding a Boomer

Baby boomers emerged after the end of World War II when birth rates across the world spiked. The explosion of new infants became known as the baby boom. During the boom, 76 million babies were born in the United States alone.

In a 2021 article by the Brookings Institution, Baby boomers spent about $8.7 trillion in 2020 on goods and services. This is expected to increase to $15 trillion by 2030.

Even though they are aging (the very youngest boomers are in their late 50s as of 2021) they continue to hold corporate and economic power. In many countries they hold more than 50% of personal net worth belongs to boomers.

 

Why Boomers’ Retirement is Different

The first of the baby boom generation became eligible to retire in 2011.10 In many ways, the way they spend their post-work years will be different from that of their parents.

 

Much Longer Retirement

Many people in previous generations worked as long as they could and few were fortunate enough to have a retirement that would be considered golden by today’s standards. America’s post-World War II prosperity made things better for the greatest generation, who benefited from a workforce in which there were over 16 employees for every retiree.11 Plenty of people in that generation were able to retire at the official age of 65.

One change between then and now is that a large percentage of the 73 million American baby boomers are expected to live longer than their parents did. So their retirement period will be longer.12

Higher Expectations

With more health and energy—and their children now adults—boomers who can afford it expect to spend at least early retirement fulfilling travel dreams and other bucket-list items. Those who reach retirement age now are often healthy enough to run marathons, build houses, and even start businesses.

Instead of relocating to retirement communities, many are migrating to small towns that can offer employment and education opportunities. Other boomers are choosing to move into urban areas to take advantage of amenities, such as public transportation and cultural attractions.

Moving Abroad

Some with thinner resources or wanting a cultural change are retiring outside the U.S. to countries with lower costs of living, such as Mexico, Portugal, and the Philippines. Other countries being considered are Panama and other far off locations. Boomers are looking for culture, action, cuisine and entertainment.

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