Some argue that the baby boom generation is the wealthiest and most wasteful of all ages. Early boomers, born between 1946 and 1955, are probably already living in retirement. Late boomers born between 1956 and 1965 are on the verge of retirement, navigating the new socio-economic realities that most ignore.
The baby boom generation is unique. There will never be another generation like it. Baby boomers’ parents were mostly part of the Great Generation, also known as the GI generation, which includes those born between 1901 and 1927. They were shaped by the Great Depression and were the primary participants in World War II. The GI generation did not retire. They worked until they dropped to survive in the hardest of times.
Baby boomers led the post-war economic revival based on a voracious appetite for consumerism, travel and adventure. Many accumulated considerable wealth they hoped would serve them well to live the best years of their lives in comfort. They aspired for a life without all the stress of a demanding job and suffering vicissitudes of the corporate world. Few acknowledge that the cost of this material success was the depletion of the world’s finite resources at a rate unprecedented in the history of humanity.
Socio-economic realities do not stay still for any length of time. In the last four decades, the corporate world had one guiding principle: maximising profits. This led to a combination of cost-cutting, relocating positions, juniorising roles and downgrading job descriptions, coupled with unspoken ageism, which has created an existential crisis for older workers.
The financial services operators mainly produce the most publicly available information on navigating the road to retirement. They want to have a “slice of the wallet” of a generation of older adults who are perceived as the wealthiest sector of society.
Some economists had predicted that the millennial generation would inherit trillions of euros from the baby boomer parents and grandparents. However, with the exorbitant prices of homes and fast-rising inflation, millennials are looking for financial support from their parents.
This new reality could be why some early boomers who want to retire cannot do so. A sizeable section of western older adults lacks the money to sustain themselves in retirement.
Finding meaning in the retirement phase of life is as challenging for many retirees as the lifelong effort to hardwire financial resilience in retirement plans
Outdated labour market policies and practices are evidenced in job descriptions obviously written to dissuade older workers through the usage of thinly veiled verbiage, such as “under 10 years of experience” or “requiring cutting-edge technology knowledge”. At the same time, the number of younger workers joining the labour market keeps shrinking, creating serious threats to economic growth.
More recent events like the outbreak of COVID-19 are also impacting the issues that
determine how older adults navigate the retirement phase of their lives. The pandemic made us face our own mortality. It has opened the door to thinking deeply about what we want to do with the rest of our lives.
Riley Moynes, the celebrated educator and author of the Four Phases of Retirement podcast, identifies four phases most people go through in retirement.
The Vacation Phase usually lasts up to one year, when a retiree enjoys the freedom of leaving the rat race. The second phase is the Loss Phase, where some retirees start to suffer from fear, depression and anxiety as they try to cope with the loss of social relationships, loss of a sense of purpose and loss of power. Moynes argues that this phase could be as traumatic for some retirees as a divorce or bereavement.
The third phase is the Trial and Error Phase, where one tries different things to keep engaged with the rest of the world. The fourth phase is the Reinvent and Rewire phase, in which those who successfully navigate the previous three stages find a new sense of purpose, usually by service to others.
Good health and financial resilience will always be the bedrock of sound retirement planning. Those with health issues or financial insecurity might have to struggle even more to cope with these debilitating factors. The support from the state or the family may frequently not be enough to mitigate the pain of living in poor physical or financial health in retirement.
For those healthy retirees lucky enough to have financial independence, navigating mental health issues will be a priority. Finding meaning in the retirement phase of life is as challenging for many retirees as the lifelong effort to hardwire financial resilience in retirement plans.