Baby Boomers Retirement Plan
Those born at the beginning of the Baby Boomer period (1946 – 1964) are starting to reach the age of retirement, however, with the current economic climate how will this group of experienced employees fund their retirement?
Heyday, a research group set up by Age Concern, conducted a survey on 1,770 people finding 58% of those in their 50s and 60s who are currently working want to continue a level of work beyond retirement, with one in ten not wanting to retire at all in order to support their retirement.
Despite many of those heading towards retirement wishing to continue working, in accordance with government wishes, many employers are keen to retire their senior executives at 50 due to the rapid rise in management trainees and younger staff. Employers are failing to recognise the vast knowledge and experience that this generation hold and are quick to trade them in with what they value – younger and more knowledgeable staff. Therefore, the Government should be encouraging a business culture where older workers are valued and retained by firms.
Baby Boomers are generally cash and asset rich and need to invest their money as they wind down to retirement or seek alternative opportunities to supplement early retirement. Recent trends are showing that alternatively to continuing as employees, the Baby Boomer generation are increasingly buying businesses as they approach retirement age to support their financial framework. It is a known fact that buying a business with a proven track record is safer than starting a new enterprise and investing in shares and pension funds. This explains why when BusinessForSale.com conducted a survey they found that 27% of those browsing are aged 55 and over. By investing in a business with stability, Baby Boomers will have a reliable and consistent source of income to support their retirement.
Alternatively, retirement is an opportune time for a number of business owners to sell their business in order to support a healthy financial retirement. These businesses are usually well developed and secure, making them an excellent choice for those looking to invest in business to support retirement.
The lack of loyalty employers are increasingly showing to their older employees is a wake-up call for those approaching retirement to invest their money and follow the new pattern of retirement that the first wave of Baby Boomers have created.
