What impact on the economy will the Baby Boomers retiring in droves have over then next 10 years?
Posted by admin in Finance Saturday, 27 November 2010 01:18 6 Comments
The oldest of the baby boomers are now 66. Over the next 10 years, most of the largest population group in the US will be tapping into Social Security, Medicare, will be pulling their money from their IRA accounts (ie, selling stock), and leaving professions like medicine and engineering.
So how will this drastic shift impact our economy?
It will be the end of Medicare as we know it.
And that rationing that doesn’t exist will get worse.
it will open up more jobs.
It will be a drain on public services. However, IRA (excluding Roth accounts) withdrawals will result in tax revenue as will estate taxes. Finally, once the Boomers reduce in numbers, then the drain on public services will be reduced
All the money these people have paid in and worked all their lives for will get distributed to many with terrible work ethics.
We probably won’t retire even though we paid massive surpluses into Social Security over the last few decades.
We know that all the money has been spent as part of the general government funds while the fake tax cuts were handed out.
When they turn 70, they will be forced to withdraw their savings. When this happens, the number of people withdrawing money will be greater than people making deposits. This will cause an endless recession.