March 2000 March 2000
Baby Boomer - Noun; Anyone Born During the Years of 1946 Through 1964, a Member of a Baby Boom Generation
Jamie H. Thompson, thompsonja@missouri.eduThe first Baby Boomers turned 50 on January 1, 1996. The 50th birthday of the oldest boomers was a media event.
Who are these Baby Boomers? During the nineteen years between 1946 and 1964, roughly 76 million babies were born. Approximately 17 million more babies were born than would have if fertility rates during this period equaled those of the early 1940s.
Why were so many babies born? Two historical events preceded the Baby Boomer generation. The first was the Depression, which began in 1929 and lasted through the thirties. The birth rate during these years remained low. A few couples felt they could not afford more than one child; others had no children.
Then came World War II. Men went to war; women worked the swing shift. When the war ended, the men came home and the women no longer had to work. Young couples saw this as a wonderful time to raise a family and to be a part of the American Dream. Every family owned a home; mothers stayed home with their children and fathers were the primary breadwinners. Companies rewarded employees with pensions for their years of service. Pensions and Social Security provided adequate income for retirement. There were rules of thumb for saving and spending; families should not borrow except to purchase a home or a car or an appliance.
As these 76 million Baby Boomers grew up, their sheer numbers have greatly affected every segment of our society and our economy. Today, boomers represent about 33 percent of the nation’s population. They are a group that will have a dramatic impact on the future of our society.
Baby Boomers are unlike older generations of Americans, both in attitudes and lifestyles. They have matured during a period of profound political, economic, and social change.
In our changing workplace, Boomers are more likely to work for more than one employer, sometimes many more. Therefore, pensions are often small if not non-existent. Boomers face a greater probability that they will have to work after retirement.
Since the 70s, there have been a number of social changes. Many Baby Boomers are remaining single, delaying the age of their first marriage, and having children at later ages. As the result of this trend, many boomers may find it necessary to work longer and later in life to support their children. For many of these boomers, preparing for retirement begins after their children are out of college and/or on their own.
The divorce rate has also increased dramatically. Many newly divorced boomers find themselves starting over again financially. Living together is cheaper than living separately. Couples who pool their incomes can devote more dollars to saving for their children’s college education and their own retirement. Single parents with children experience the disadvantages of supporting a family on one income, leaving very little, if any, for savings.
Unlike their parents, boomers desire a level of living that is often well beyond their capabilities to attain it. Borrowing has become a way of achieving and maintaining this level of living, thus increasing debt load. There has also been a dramatic decline in the savings ethic and a rise in credit use to cover not only emergencies but also usual living expenses.
By 2030, the surviving Baby Boomers will be between the ages of 66 and 84. Most boomers will be retired. Some will have very comfortable retirements, while others will suffer economic hardship due to a low level of living and their dependency on public support. How boomers plan for retirement today will determine what their retirement will be in the year 2030.
Sources: AARP (1994). Aging Baby Boomers: How secure is their economic future?; Huyer, J. (1997). Single, Divorced, Widowed Professional Women: Retirement, a question of independence or dependence.
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