Forum Post: Baby Boomers, Benefits, Jobs and Retirement

The baby boomers are the largest cohort group in America. The first baby boomer turned 65 on January 1, 2011. (you can claim social security at age 62 but at a lower benefit rate).

After the 01/01/11 date 10,000 people will reach retirement age every day. And this will occur for the next 19 years.

Medicare, Social Security and Medicare part D are the most expensive programs that the government has promised to the people.

There are a few problems here.

For years social security was taking in more then it paid out. Instead of putting this surplus into an interest bearing account our wise federal government decided to spend it. For the past few years the program is now paying out more than it takes in.

Many people rely solely on Social Security for retirement.

Many of the people that actually prepared for retirement through 401k plans and other investments lost their retirements when the recession occured.

Facing retirement the baby boomers could either a) go ahead and retire and hope for the best or b) continue working and not claim benefits (although you can claim social security and still have a job as long as you make under a certain dollar amount per year. c) claim benefits and still work

Here in lies the problem. If all the baby boomers chose to retire we won't have the payments coming in to cover their benefits. Which will grow the deficit at a very high rate.

If they decide not to retire they won't leave jobs that could then be taken by the unemployed.

Or they could draw benefits and still hold a part time job which some unemployed person could hold.

This is a huge problem that America is facing.