Essay - Baby Boomers and Retirement Introduction the Paper Explores the Effects...


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Baby Boomers and Retirement

Introduction

The paper explores the effects of the retiring baby boomer generation on Gross Domestic Product (GDP), one of ***** most widely accepted measures of economic growth. Two major components of GDP, consumption and government spending, will be significantly impacted by future government policies regarding retirement *****nefits, most notably Social Security ***** Medicare. With both these components in m*****d, the paper recommends those ***** that are most likely to maximize *****.

The GDP-Related Challenges of Baby Boomers and *****

***** demographics ***** straining Social Security resources. At the end of World War II, there were 44 workers paying ***** Security taxes for every retiree collecting from the program (The first baby boomer collects Social Security, 2007). Now, the ratio is just three workers ***** every one reitiree ***** *****s will soon outnumber workers. According to ***** Council ***** Economic Advisors chartered with providing objective economic analysis and advice on the development and implementation domestic and international economic policies, ***** Security will begin to incur annual operating losses in 2018, when its outlays ***** exceed its tax revenues (CEA memo on Social *****). To cover ***** shortfall and to "stay open," Social Security will use up its Trust Fund (or draw down its bank account) ***** 2018 to 2042. Beg*****ning in 2042, the Social Security Trust ***** will be bankrupt because the resources available to the system (payroll taxes plus income taxes ***** Social ***** benef*****), will be insufficient to ***** the liabilities of the system (benefits scheduled for retirees, people with disabilities, and o*****r beneficiaries). If nothing is done to add to Social Security *****, benefit payments would have ***** be reduced by roughly 27 percent.

Like Social Security, Medicare resources ***** become strained as aging baby boomers grow in number. A study by the Centers for Medicare and Medicaid Services reveals that ***** ***** ***** expected to grow to $844 billion in 2017, up from $427 billion in ***** (Zhang, 2008). The study also shows that there also will be a shift *****w*****rd the private arm of Medicare, which tends to cost the government more. By *****, 27.5 percent ***** eligible Medicare enrollees are expected ***** enroll in managed-care plans, compared with 16.4 ***** in 2006.

***** overlooked ***** overall discussions of retirement ***** is that the aging population will also negatively impact ano*****r very important component of GDP, consumption, in the not too distant *****. Personal consumption, at 70 percent, is the largest component of ***** (Facts on policy: C*****sumer Spend*****g). The aging of ***** baby boom generation will affect the ability ***** many retailers to grow and prosper (Retailing 2015: New frontiers). The most rapidly growing age segment in the United States is the 55+ segment. By 2015, leading-edge ***** ***** will be approaching age 70, a lifestage when spending on many goods ***** services such as softgoods and homegoods ***** c*****sumables ********** ***** decline. In fact, the only category expected to experience an increase in spending will ***** healthcare.

Possible Solutions

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