Top 10 Baby Boomer Myths

10 Baby Boomer Myths

10—Boomers are retiring early
Contrary to much of the attention given to the first Boomers’ turning 62 this year and being eligible to take Social Security benefits early, in reality very few Boomers are planning to stop working entirely when they reach retirement age, in fact, only 11 percent. But Approximately 3 out of 4 Americans start claiming Social Security benefits the moment they are eligible at age 62. Most are doing this out of necessity. However, by claiming Social Security early they get locked in at a much lower amount than if they would have waited. And of those Boomers who know what they are planning to do when they reach retirement age (some two-thirds), 72 percent plan to work either part (65 percent) or full-time (7 percent) after they reach retirement age.
 
9—Boomers are downsizing their homes
Despite the image of older consumers “winding down” as the years progress and simplifying their lives and homes, just 6 percent of Boomers are planning to be living in a smaller residence five years from now. Moreover, 76 percent plan to live in either a same-sized (their current home or a new home of the same size) or larger home.
 
8—Most Boomers are married empty nesters
Most are actually not Empty Nesters. Only about one in four Boomers fit the profile of married with adult children who have left home. 37 percent of Boomers still have children under 18 in the home - and one-third of Boomers are single.
 
7—Boomers are captured with mainstream advertising
Boomers are paying attention to advertising, but they do not always like what they see. Some 66 percent say that ads have gotten more crude in recent years and another 67 percent say they are less likely to purchase a product if they find the advertising offensive. 23 percent say they consider ads that are geared toward their age group insulting.
 
6—Boomers are brand loyal and will not switch
Commonly thought to be set in their ways, Boomers are just as likely as younger cohorts to experiment with new products. They are actually paying attention to advertising for new products, and 61 percent of Boomers agree that “in today’s marketplace, it doesn’t pay to be loyal to one brand,” compared with 62 percent of those age 18-41.
 
5—Boomers are wealthy
Collectively Boomers are the wealthiest generation in history, but only 9 percent are truly affluent (defined as having pre-tax incomes of $150,000 or more if working, or $100,000 or more if retired). In fact, one quarter of Boomers have no savings or investments at all. If we are not careful Baby Boomers could push us into national bankruptcy. We simply cannot afford all of the promises that we have made to them. The following are statistics about the coming retirement crisis.

• Beginning January 1st, 2011 every single day more than 10,900 Baby Boomers will reach the age of 65. That is going to keep happening every single day for the next 19 years.
• According to one recent survey, 36 percent of Americans say that they contribute nothing to their retirement savings.
• Thirty percent of workers with salaries of $100,000 or more said they are living paycheck to paycheck, up from 21 percent last year, according to the survey of 4,400 workers nationwide.
• Overall, 61 percent said they always or usually live paycheck to paycheck, up from 49 percent in 2008 and 43 percent in 2007.
• Most Baby Boomers do not have a traditional pension plan because they have been going out of style over the past 30 years. Just consider the following quote from Time Magazine: The traditional pension plan is disappearing. In 1980, some 39 percent of private-sector workers had a pension that guaranteed a steady payout during retirement. Today that number stands closer to 15 percent, according to the Employee Benefit Research Institute in Washington, D.C.
• Over 30% of U.S. investors currently in their sixties have more than 80% of their 401k invested in equities. So what happens if the stock market crashes again?
• 35% 0f Americans already over the age of 65 rely almost entirely on Social Security payments alone.
• According to another recent survey, 24% of U.S. workers admit that they have postponed retirement planning.
• 43% have less than $10k for retirement; the percentage of workers who said they have less than $10,000 in savings grew to 43% in 2010, from 39% in 2009, according to the Employee Benefit Research Institute's annual Retirement Confidence Survey.
• Thirty-six percent said they don't contribute anything to retirement savings like a 401(k) or a IRA. 
• Some 21% of all respondents said they have reduced their 401(k) contributions or personal savings in the last six months in order to get by, while 23% of the $100,000-and-over group said they had done so.

4—Boomers are winding down with age
Actually, they are quite active, as the typical Boomer regularly participates in an average of 10 activities and the participation extends beyond going to church or gardening. They are traveling (60 million took at least one trip last year), attending live sporting events (22 million) and bicycling (11 million), among other activities.
 
3—Boomers are technologically challenged
Contrary to many assumptions, Boomers were in the workforce during the evolution of computers, email and the internet, and were the first to understand the value of technology. Some 82 percent of Boomers use the internet and 64 percent have been online. Their online activities include instant messaging, downloading music or movies, financial transactions and online gaming.
 
2—Boomers are the “Me Generation”
Boomers have typically been portrayed with the self-centered label the “Me Generation,” but from their actions in later adulthood, the report says, a label of “We Generation” is more accurate. They are caring for others and caring for the world, with 70 percent saying they have a responsibility to make the world a better place, and 57 percent saying they try to buy from companies that give back to their communities.
 
1—Boomers are all the same
Baby boomers are often portrayed as a monolith—77 million people thinking, acting, behaving and buying all in the same way. Boomers, more than other segments undergo more major life events, which occur in greater frequency between the ages of 50-75 which make their actions, feelings and needs all unique.

 
Baby Boomer Statistics

• Currently there are 78 million baby boomers
• Each day, 10,958 new baby boomers are of age—4,000,000 a year,
• 18 years left in the baby boomer generation
• 63% of baby boomers want a “safe and secure” retirement
• 3 million searches for “annuity” and derivatives on Google monthly
• Baby boomers need and want our help!