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


Copyright Notice

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 comp*****nts of GDP, consumption and government spending, will be significantly impacted by future government policies regarding retirement benefits, most notably Social Security ***** Medicare. With both these components in mind, the paper recommends those policies that are ***** likely to maximize GDP.

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

***** demographics are straining Social Security resources. At the end of World War II, *****re were 44 workers paying Social 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 and retirees will soon outnumber workers. According to ***** Council ***** Economic Advisors chartered with providing objective ***** analysis and advice on the development and implementation domestic and international economic *****, Social Security will begin to incur annual operating losses in 2018, when its outlays ***** exceed its tax revenues (CEA memo on Social *****). To cover the shortfall and to "stay open," Social Security will use up its Trust Fund (or draw down ***** bank account) ***** 2018 to 2042. Beginning in 2042, the Social ***** Trust ***** will be bankrupt because the ***** available to the system (payroll *****es plus income taxes ***** Social Security benefits), will be insufficient to cover the liabilities of the system (benefits scheduled for retirees, people ***** disabilities, and other beneficiaries). If nothing is done to add ***** Social ***** resources, benefit payments would have to 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 ***** Medicare and Medicaid Services reveals that Medicare ***** ***** expected ***** grow to $844 billion ***** 2017, up from $427 billion in ***** (Zhang, 2008). The study also shows that there also will be a shift toward the private arm of *****, which tends to cost the government more. By *****, 27.5 percent ***** eligible Medicare enrollees are expected to enroll in managed-care plans, compared with 16.4 ***** in 2006.

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

Possible Solutions

By

. . . . [END OF ESSAY PREVIEW]

Download complete paper (and others like it)    |    Order a brand new, custom paper

Other topics that might interest you:

© 2001–2016   |   Term Papers on Baby Boomers and Retirement Introduction the Paper Explores the Effects   |   Essays Samples