So serious question from the experts on here. There are so many investments vehicles out there, 401k, 529, HSA, ESPP, so on and so on. As the Boomer generation begins to retire in earnest and start divesting and stop making contributions is there enough investors out there to close the gap or is this a ticking time bomb set to implode?
What happens when the Boomers retire?
byu/Koldcutter inwallstreetbets
Posted by Koldcutter
30 Comments
The plebeians drown in their masters’ spit.
The peak of them hitting 65 is this year according to CNBC. Now if they had followed the standard investing advice they should have reduce their stock holdings 5+ years before retiring.
Even if they didn’t, I honestly don’t think anything is going to happen.
I think people overestimate the wealth of the boomer generation. There’s a possibility that they’ll have to work until they physically can’t anymore.
Edit: only a certain part of them may need to work (I don’t know which percentage)
We don’t. We die at work.
Like real men.
We’re all going to retire at the exact same day to REALLY screw with the younger generations! >:-)
I’d be curious to know what percentage of Boomers have a pension plan without any other investments for retirement. In other words, only relying on social security + pension.
They are retired. They just won’t die
There’s a few things at play but fundamentally
* Demand impact (boomers stop investing ‘new’ money) – yeah they’ll stop buying, but lets say due to population growth every retiring boomer is replaced by 2 avocado and latte-chomping youngsters. They’ll invest half as much each, but there are twice as many of them, so it’s very broadly a wash (I would guess).
* Supply impact (boomers start selling) – also some impact, but they’ll sell ‘evenly’ across the year. Even those that sell everything the day they retire are just individuals and will drown in the noise of the market. So a gradual increase in sell-side pressure.
So it depends on the balance of these – which I think won’t be zero, but will be hard to call. And any rounding errors will probably be sorted out by Gen X moving to the most senior seats the boomers vacate, getting a bit more income and continuing to invest at similar or greater levels to boomers anyway.
What we might very well see is the overall market demand skewing more heavily to ‘esg’ ~~greenwashing~~ investments, over time making all the “bad” companies like oil, gambling and tobacco fantastic value plays and dividend yielders. But probably not quickly enough for WSB to get the universe all-in on BAT options.
I am excited for boomers to retire because then I won’t have to show them how to convert their files to PDF
We turn them into soylent green to feed their grandchildren
Complaining about socialism while living off of social security should keep things afloat, right?
Boomers will never retire. They heads will be in jar, still giving command 20 years from now.
Pretty sure the average age of ‘boomers’ is like 69 (nice). The wealthy ones are probably already retired.
Ehat do you mean “start retiring” ? There are more boomers over 65 than under.
They’re going to spend all that money on cruises and healthcare. Don’t worry it’ll flow back into the economy.
What do you mean “begin to retire”? They are retired. GenX is now the new boomer
We need the boomers. I rather feel good about myself dealing with them than feel normal dealing with people like me.
What do you mean by “close the gap”? Most boomers are probably not 100% in equities anyway.
The number one killer of old people is retirement.
All the boomers’ stocks get liquidated to pay for medical bills and nursing homes. The money goes to hedge funds for cocaine and strippers.
“begin to retire in earnest”
More than half of Boomers are already retired.
The Boomer generation is currently between 64 and 78 years old.
I get the concern you’re voicing, but you’re like 10 years behind on wondering what the future of Boomer retirement means for the market.
Check out
r/fire
As a boomer most boomers I know aren’t rich, don’t have DB pension plans and are struggling like everyone else, contrary to the opinions of the bubblegum crowd.
They raised kids without EI benefits, many had single income families during those years, put kids through university, lived through mortgages of 16%. Many bought homes at the high mark and sold in market dumps as happened frequently before 0% rates became the norm.
Boomers have been retiring for the last decade. Millennials and gen z are taking their place in the market
They sell investments to buy goods and services and people who work will so get their money. What they don’t sell their children inherit.
You won’t even notice the selling
Vast majority of them are retired already. It’s really late in the generation boomers out there still working ones in their 60s
The 40 and 50 year Olds are gen X.
Replace Retire with Die. Some speak of the diminishing Population and that it will not be enough to support the number of businesses / Products / Services .
Most of boomer wealth is in real estate
The youngest baby boomer is aged 60. The oldest is 78. Your question is about when they BEGIN to retire?