The Latest from the Silver Tsunami: Boomer Retirement Stats

Terry Herr, CFP®

As the baby boomer generation moves into retirement, society is undergoing a significant transformation. Termed the “Silver Tsunami,” this demographic shift has far-reaching implications for both retirees and the economy as a whole.¹

In this blog post, we delve into the latest retirement statistics for the baby boomer generation, exploring the trends, challenges, and opportunities that accompany this seismic demographic change.

The Baby Boomer Generation: A Demographic Overview

The baby boomer generation, born between 1946 and 1964, represents a substantial portion of the global population (more than 20%).² Understanding the sheer size and influence of this generation allows us to comprehend the impact of their retirement on society.

Retirement Age
Going against traditional retirement norms, many baby boomers are choosing to extend their working years. Factors such as increased life expectancy, improved health, and a desire for continued engagement contribute to this trend.

The average retirement age in the United States is 61, according to a 2022 Gallup survey. In 1991, the average retirement age in the U.S. was 57. In 2002, it was 59. According to the poll, people still working in 2022 expect to retire at age 66 on average.³

Geographic Patterns
There is a shift in desired retirement destinations as baby boomers explore new places to spend their golden years. Florida, Arizona, Nevada, and other states across the US are seeing an influx of baby boomer residents. Baby boomers account for almost three out of every 10 people in Cape Coral, FL (29.9%), Scottsdale, AZ (28.1%), and Clearwater, FL (27.0%).⁴

Challenges Faced by Retiring Baby Boomers

Next, let’s look at some statistics that illustrate the retirement-related challenges many baby boomers are facing.

Healthcare Concerns
With aging comes an increased reliance on healthcare services and the increased cost of healthcare. According to Access One, today’s healthcare infrastructure is ill-equipped to handle the millions of adults who will need day-to-day care.⁵ About 70% of people over age 65 are expected to need some form of long-term care before they die, and with 10,000 baby boomers retiring every year, this is going to change our current healthcare landscape.⁶

Financial Preparedness
One of the critical aspects of retirement planning is financial readiness. But are baby boomers financially ready to retire? According to the National Institute on Retirement Security, 62% of working households with those aged 55–64 have retirement savings less than one times their annual income, which is far below what they will need to maintain their standard of living in retirement.⁷

Opportunities Arising from the Silver Tsunami

There are also some plus sides for baby boomers retiring soon and others who interact with them.

Silver Economy
The burgeoning senior demographic presents a unique economic opportunity, often referred to as the “silver economy.” The effects of this may include improved healthcare technology, more job opportunities for those working in healthcare, and an expanded travel and leisure industry.

Dr. Damien Ng, a research analyst at Julius Baer, says, “For those with the foresight to embrace the Silver Economy’s potential, it represents more than just a chance for financial gain. It’s an opportunity to be at the forefront of a societal shift towards a more inclusive, compassionate, and age-friendly world.”

Intergenerational Collaboration
The baby boomer generation possesses a wealth of knowledge and experience that other generations can learn from. Boomers are more active and tech-savvy than previous aging generations. Approximately 75% of adults 65 years of age and older are online.⁸ Because of this, younger generations can easily continue to work with and communicate with baby boomers.

The Silver Tsunami is not merely a demographic shift; it is also a complex and multifaceted phenomenon with wide-ranging implications.

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