SilverLink - Spring/Summer 2008 - (Page 10)

Some Boomers will enter retirement with adequate resources to handle whatever challenges post-retirement life has to offer. Others will struggle, perhaps due to insufﬁcient ﬁnances or unforeseen health problems. With an estimated 78 million Boomers retiring in the next 15-20 years, who’s going to provide BoomerCare? The Numbers • • • • The birth years 1946-1964 are generally identiﬁed with the boom generation. Every six seconds, someone reaches age 50. The ﬁrst “ofﬁcial” Boomer turned 62 and qualiﬁed for Social Security on January 1, 2008. 55 million people in the U.S. are over 55 years of age and 34 million are over 65. Those ﬁgures are estimated to double by the year 2030. Median age in the U.S. today is 43. By 2014, the youngest Baby Boomers will be 50 years of age and the oldest will be 68. People over 50 account for 43 percent of all U.S. households. The ﬁrst Boomer will turn 65, and qualify for Medicare beneﬁts, in 2011. Individuals over age 85 will make up the fastest growing segment of the population. By 2020, the senior population will number approximately 115 million. The current senior population possesses over $900 billion in disposable income. Nearly a quarter of homeowners aged 65 to 69 have a net worth of $250,000 or more1 Soaring healthcare and long-term care costs, less generous pension payments (coupled with lack of adjustment for inﬂation) and termination of retiree medical beneﬁts are just a few of the challenges facing today’s retirees. “Boomers are a spending generation, not saving nearly enough for longterm care,” states Sue Nelson, PR Director for Homewatch CareGivers, an in-home care service headquartered in Denver, Colorado. With “$3,000 per month for the most inexpensive assisted living (and much more for skilled nursing), there may be only one viable solution for tens of millions of future seniors—to be supported by or live with their children.” A Chinese proverb states “at the heart of every crisis lies a powerful opportunity.” Many seniors express the desire to remain in familiar surroundings, even if that means living alone. Having to live with adult children would not be a ﬁrst choice for many. Remaining at home is not necessarily a bad solution—if one’s health and ﬁnances allow it. Those whose health is declining may ﬁnd the following questions become more critical as time passes: “Do I need the type of care only available in a facility?” “If so, what type of facility? Assisted living? Skilled nursing?” “Is home care the answer?” “If so, who will supply it?” As seniors seek answers to these questions, they will also have to ask how best to pay for the care they need. Unfortunately, just as the number of retirees is set to increase dramatically, the Medicare program has already experienced funding cuts and is estimated to run out of money by 2019.2 • • • • • • • Finding New Answers The U.S. Bureau of Labor Statistics (BLS) estimates that the number of Baby Boomers requiring some form of healthcare will rise by 10 million persons over the next decade. The current healthcare workforce is estimated to be approximately three million, and demand in the coming years is expected to increase by at least one million.3 As the Boomers who are current caregivers begin to retire, will adequate staff be available to ﬁll empty positions left in hospitals, elder-care centers and other healthcare institutions?4 A Chinese proverb states “at the heart of every crisis lies a powerful opportunity.” On a positive note, the BLS estimates that the number of new healthcare providers will rise an estimated 27 percent by 2014, helping to replace some of the retiring caregivers. Because many seniors will elect to receive healthcare at home—either from family members or trained third-party individuals— cont’d on page 36 Boomer Challenges Financial security for the Boomer generation will be signiﬁcantly impacted by the availability of Medicare, senior housing and medical insurance, as these resources will be stretched to their breaking point by overwhelming growth within this age demographic. While many Boomers have had successful business careers, this generation grew up at a time when saving for retirement wasn’t as crucial as it is today. Most Boomers hadn’t even heard of IRA accounts or 401(k) and 403(b) savings plans in their youth. Many never thought they would have to save for retirement. In the past, a comfortable retirement was made possible through one’s employer pension combined with Social Security beneﬁts. As Boomers begin to retire, however, that’s no longer the case. CONTACT JOE SCHAFFNER AT 402.96 4.5478 OR JSCHAFFNER @ SSGI.COM 10

Table of Contents Feed for the Digital Edition of SilverLink - Spring/Summer 2008

SilverLink - Spring/Summer 2008 Contents Risk Management: Mitigate & Educate Disastrous Distractions Accounts Receivable BoomerCare Risk Reduction, What’s Your Function? Time Out! Double Down Employee Benefits: Who’s Paying Whom for What? Time to Reconcile Keep Your Eye on the Pension Prize Show Me the Money Private Client Services: A Generous Strategy Is There Any Good News Left? Special Insurance for Special Times Client Spotlight: Omaha Performing Arts Internal Happenings: SilverStone Group Wellness Activities Group

SilverLink - Spring/Summer 2008

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