We have all been hearing this for years… how the aging baby boomers will impact our economy. Here is a chart that illustrates the potential impact. The “baby boomers” are getting old! They will draw on our resources like no generation has done before them. They are collecting social security benefits and are likely to draw them for a long period as their life expectancies are likely to extend past previous generations. They are using Medicare benefits and are likely to use the benefits for a long period of time. Also, most of the medical costs are a lot more expensive than when previous generations collected benefits. The baby boomers are also paying a lot less income taxes than during their working years as well as FICA taxes (Social Security).
Are we ready for all of this to happen? I don’t think so. Social Security is not adequately funded, Medicare is underfunded and we can’t afford to see a decrease in our income tax revenues.
What will be the result? I don’t know, but I’m guessing a lot of political turmoil. The recipients… the older generation…won’t want to give up any of their “benefits.” And the payees…the working generation…will tire of paying so much in taxes. Plus, money that goes into promised benefits is not available for current spending.
It is difficult to see how we can avoid a lot of stress and conflict. Hang on!