Something Terrible Is Happening To Boomers

Summary

The video examines why nearly half of Baby Boomers lack retirement savings despite being billed as the wealthiest generation. It outlines how the three pillars of retirement income - personal savings, Social Security, and pensions - are becoming increasingly unstable. With longer lifespans and rising healthcare costs, many Boomers can't afford essential living expenses. Their adult children may be unable to provide caregiving due to financial constraints. The crisis illuminates systemic issues in the US economy and social structures, impacting multiple generations.

Takeaways

• 😱 Nearly half of Baby Boomers have no retirement savings
• 😳 Boomers are now the fastest growing homeless demographic
• 💸 The 3 financial pillars for retirement are getting shaky
• 😠 Politicians have been raiding Social Security funding for decades
• 😤 Social Security funds will be depleted by 2034
• 📉 Pensions have been largely replaced by inferior 401(k)s
• 🤑 Wall Street profits off high 401(k) fees that erase savings
• 😫 Healthcare costs in retirement average $275,000 per couple
• 😞 Most Boomers can’t afford nursing home care that averages $8k/month
• 😭 Many Millennials can't afford to care for aging Boomer parents

Q & A

What percentage of baby boomers have no retirement savings?

45% of baby boomers have no retirement savings.

Why are baby boomers becoming the fastest growing homeless population?

Many baby boomers do not have enough retirement savings to support themselves financially in their later years. Their lack of savings combined with cuts to Social Security benefits and unstable 401k returns are causing financial hardship.

How is Social Security funding being impacted?

Social Security is impacted because the government has been taking money from the fund and spending it on other programs instead of saving it. This has depleted the Social Security reserves.

What changed with the introduction of 401k plans?

401k plans shifted the cost and responsibility of retirement savings from employers to employees. This resulted in more market risk for individual retirement accounts.

Why are 401k fees so detrimental?

The high fees charged on 401k accounts compound over time, exponentially reducing total returns. On average, fees can cost a family $155,000 over their lifetime.

How has increased life expectancy impacted retirement planning?

Increased life expectancy means retirement funds need to last longer. It also raises the old age dependency ratio, meaning more retirees rely on fewer workers to support programs like Social Security.

What expenses typically increase in retirement?

Healthcare costs significantly increase in retirement, with estimates that a healthy senior couple will need $275,000 just to cover out-of-pocket medical expenses.

Why can't many baby boomers rely on their children?

Many Millennials are struggling financially themselves with debt, unaffordable housing, and stagnant wages. They often cannot afford to take time off work to provide elder care.

Why are nursing home shortages an issue?

Many nursing homes are understaffed, overcrowded, and operating at a loss. Over 1,000 have closed since 2015 due to lack of funding and resources.

What other retirement crisis is on the horizon?

Many jobs are at risk of being lost to automation and AI. This could severely impact Millennials' ability to save for their own retirement down the road.

Outlines

00:00

😮 45% of Baby Boomers Have No Retirement Savings

Paragraph 1 discusses that 45% of baby boomers have no retirement savings despite common perceptions that they are the wealthiest generation. It explains the three main sources of retirement income - savings, social security, and pensions - are becoming unstable. Many baby boomers are experiencing homelessness as they cannot rely on these income sources in their retirement years.

05:00

😫 Social Security Fund Projected to Run Out by 2034

Paragraph 2 explains how the Social Security fund is projected to run out by 2034. Money taken from the fund over the years was replaced with IOUs instead of being paid back. With more money going out of the fund than coming in as baby boomers retire, there will only be enough taxes coming in to cover 77% of promised benefits by 2034.

10:01

😱 Increased Life Expectancy Strains Government Resources

Paragraph 3 discusses how increased life expectancy is putting a strain on government resources to support the growing elderly population. With the old age dependency ratio projected to increase to 50% by 2075 in the US, taxes and retirement ages may need to be raised to cover increasing healthcare and other costs.

15:01

😨 Your Job is Being Taken in a New Way

Paragraph 4 states that something strange is happening to jobs where people are getting fired without actually getting fired. It provides a link to learn more about what is happening and how to stop it from happening.

Keywords

💡Baby Boomers

The Baby Boomer generation refers to the large demographic cohort born between 1946-1964 after World War II. The video explores how many Baby Boomers are now reaching retirement age without adequate savings, facing poverty and homelessness.

💡retirement savings

Many Baby Boomers have little to no money set aside for retirement. 45% have no retirement savings at all. This makes them financially vulnerable in old age when they can no longer work.

💡Social Security

A government program providing retirement income for seniors. But due to underfunding, Social Security payouts are projected to be cut by 20% by 2034, reducing what Baby Boomers receive.

💡401(k) plans

Private retirement accounts that shifted responsibility from employers to employees. But high fees and market crashes have diminished many Baby Boomers' 401(k) balances.

💡healthcare costs

Medical and long-term care costs that skyrocket in old age. Most Baby Boomers do not have enough savings to cover these expenses in retirement.

💡nursing home shortage

With insufficient savings and care options, Baby Boomers could face barriers accessing nursing home care as they get older and sicker.

💡Millennials

The younger generation now supporting the economy. But debt, unaffordable housing, and stagnant wages may limit their capacity to assist aging Baby Boomers.

💡caregiving burden

Providing unpaid elder care causes mental, physical and financial strain on Millennial children. This could impact their own retirements.

💡old-age dependency ratio

The ratio of retirees to working age people. A higher ratio strains government programs and younger workers supporting the retirees.

💡three-legged stool

The three sources of retirement income - savings, Social Security, and pensions. But all three 'legs' are now looking unsteady for supporting Baby Boomers.

Highlights

45% of baby boomers have no retirement savings

Baby boomers are now the fastest growing generation to experience homelessness

The average baby boomer spends about $52,000 a year in retirement

Social Security fund projected to run out by 2034, reducing benefits by 23%

401K plans shifted retirement costs from employers to employees

51% of actively managed 401K funds fail to beat the stock market

Average 401K fees cost American families $155,000 over their lifetime

12,000 people turn 65 every day in 2024 as markets crash

Healthy couple will need $275,000 for healthcare costs in retirement

70% of baby boomers will need long-term care costing over $7,988 a month

Medicare does not cover long-term care needed by most baby boomers

Over 1,000 nursing homes closed since 2015, capacity shrinking

Millennials struggle to assist parents due to jobs, debt, housing costs

Unpaid caregivers over 50 lose $300,000 in income and benefits

People getting fired without getting fired - click to learn more

Transcripts

there are 73 million Baby Boomers in the

US and they can all retire by 2030 but

at the same time 45% of baby boomers

have no retirement savings and they are

now the fastest growing generation to

become homeless so if everyone is saying

baby boomers are the wealthiest

generation what's going on what happened

to all their money chances are when you

think of retirement you see yourself

sipping spicy Margaritas in Costa Rica

or cruising down the Miami freeway

counting your money all then to the

three-legged stool in finance the stool

basically represents the three most

common ways retirees receive income in

their Twilight years the only problem is

the three legs are starting to get

wobbly firstly there's savings to think

about after working for 46 years you're

expected to have a sizable Nest Egg

saved up from which you can slowly

withdraw from after you stop working the

problem is the average baby boomer isn't

prepared 45% of baby boomers have no

retirement savings and out of those who

do 28% have less than $100,000 saved now

$100,000 might sound like a lot of money

but on average people older than 65

spend about $52,000 a year to live

there's Rising medical expenses

delicious sugar-free applesauce and

Billy Joel concert tickets you don't

have to be a math Wiz to realize the

average baby boomer will burn through

their savings sooner rather than later

and it's already happening baby boomers

are now the fastest growing generation

to experience homelessness in the 1990s

11% of the homeless population were 50

and older today that number is nearly

50% many baby boomers across the country

are now coming to terms with the reality

that working your entire adult life is

no longer enough to guarantee that

you'll have a roof over your head in

your later years so we know the savings

leg can't be relied on what about the

other two but first if you want to

easily save more money then you have to

use a savings goal tracker and checklist

I'm giving away mine for free free link

down below during a Great Depression

many Working Families lost their jobs

businesses collapsed people starved and

food rations became the norm one of the

groups hit the hardest were older

Americans who despite working for 46

years of their lives now lived in

poverty in response President Roosevelt

passed a Social Security Act in 1935 to

provide a financial safety net for

retirees basically retirees received

monthly checks from the government to

spend on Essentials but Social Security

wasn't free the government designed it

as a pay as you go program they added a

new tax for those currently working from

every paycheck a bit of money was

deducted and put into the Social

Security trust fund in return current

workers were promised that they would

receive monthly checks from the fund

after they retire and it worked after

committing Decades of their lives to the

workforce retired older Americans could

now enjoy some Leisure without

constantly worrying about finances not

surprisingly the poverty rate among

elderly households from from 35% in 1959

to 11% in

1995 now Social Security is the number

one source of income security for

retirees with over 90% of retirees

receiving Social Security benefits but

all of that is about to change remember

the little promise the government

made current workers were promised that

they would receive monthly checks from

the fund after they retire in the 1980s

President Reagan began to take money

from the Social Security fund and spent

it on other stuff Wars tax cuts for the

rich and other government programs

President Bush and Clinton followed suit

in place of the trillions of Social

Security funding they all took they just

put in an IOU a piece of paper that

promises the US government would

eventually pay the money back the

problem is they never really did the

Social Security fund has been cash flow

negative since 2010 meaning more money

is going out than coming in for a long

period of time baby boomers were the

largest generation in the US during

their working years they contribute a

lot of money to the fund for the silent

generation to draw from and now that the

largest generation is retiring in Mass

they're starting to get some of that

money back the problem is there's now

fewer workers paying into the system

it's projected that the social security

Reserve fund is going to run out by 2034

meaning all new benefits will come

directly from current payrolls taxes but

taxes would only cover 77% of their

promised full benefits you can think of

it like this if you were promised a

$1,000 hosal Security check every month

now you would only receive

$770 as the cost of everyday items

increase a 20% pay cut is pretty

significant the problem is many

Americans believe the 2034 year forecast

is guaranteed but it isn't it's a

warning about what will happen in a good

economy it isn't really account for the

unknown and uncertainty of what could

happen during a bad one since 2019 the

size of the gap between what social

security has promised and what it

expects to pay has grown by nearly $10

trillion more than 40% for every $1 that

the program has collected in payroll

taxes it has generated roughly $2 of

promises that no one expects it to keep

but what about the third leg that baby

boomers can hopefully rely on prior to

the 1980s pension were the mainstream

private option for retirement income

basically companies would set aside

money for their employees invest that

money for them and then these employees

would be guaranteed payouts after they

retire it was a time when company

loyalty actually meant something the

more you work there the more money you

received in your payout but then Ted

benna changed everything he believed

pension plans were too expensive and too

risky for companies and so he did

something about it enter the 401K plan a

much worse retirement option in

literally every single way where you now

set your money aside you pick the

Investments and if you don't do this

then too bad so sad companies love this

alternative it was a lot less work and a

lot less risk for them so many stopped

offering pension plans and migrated to

401K plans instead Shifting the cost of

retirement from the employer to the

employee and the timing was perfect

there were two stock market booms in the

1980s and the 1990s which easily

convinced workers that investing in your

own 401K was the better move from 1980

to 2008 participation in pension plans

fell from 38% to 20% while participation

in plans like the 401K increased from 8%

to

31% the problem is a whole new

generation of people who never invested

before were now chasing the bull market

with the nest egg they needed to retire

Steve sholo and Dan Robertson were two

Public School teachers who didn't know

much about Finance but they saw everyone

else was was raving about the 41 case so

they decided to join in by 1996 they had

doubled their retirement Nest EG to

$500,000 by 1999 their portfolio topped

$1 million and they were thrilled they

thought they made the best decisions of

their lives but by the early 2000s the

dot bubble burst and sholo and Robertson

saw their Fortune Crater from $1.5

million down to

$500,000 tens of thousands of people who

had been on the verge of retirement were

now forced back to work because they

lost everything but the problems didn't

stop there whenever money and investing

is involved you can bet Wall Street

finds an opportunity to profit this is

Robert Hilton Smith an economist who

regularly contributed to his 401k plan

who one day noticed something was off

about his account despite the market

doing relatively well his 401K

investment account was barely increasing

after digging for days and weeks he

finally saw where his money was going

the plan itself was invested into more

than 20 different mutual funds Each of

which had its own costs and fees there's

Asset Management fees trading fees

marketing fees recordkeeping fees

administrative fees fees for not knowing

there were fees a 2 to 3% fee might seem

inconsequential but it's not just as

investing your money allows you to

compound and increase your wealth in a

longterm cost and fees also rise

exponentially over time suppose you have

an investment portfolio worth

$60,000 you plan to contribute $500 a

month to it for the next 25 years and it

grows at an average rate of 8% per year

at the end you'd have

$884,000 in your portfolio that's a lot

of money but if you had a 2% fee you'd

be left with only

$66,500 that tiny 2% fee cost you

$278,000 in 2012 Hilton Smith reported

that on average an American family will

pay nearly

$155,000 in 401K fees to Wall Street

over their lifetime but that's not even

the worst of it the idea behind these

high fees is that when it comes to

mutual funds in your 401k a professional

is helping you invest your money to beat

the stock market the problem is about

51% of actively managed funds fail to do

so you're actually statistically better

off hiring this cat Orlando in 2013

Orlando performed experienced and

qualified wealth managers at picking

stocks and the best part Orlando doesn't

require any hidden fees just a can of

tuna once in a while about 12,000 people

will turn 65 every single day in 2024

the problem is their 401K plans are

being wiped out Fidelity found that the

average 401K balance felt by 23% in Q3

of 2023 and many are expecting the stock

market to to get even worse according to

McKenzie Americans are living longer

than ever thanks to better working

conditions and Healthcare Innovations

life expectancy has nearly doubled since

the late 1890s which is great we all

have more time to spend with our parents

and grandparents the only problem is it

now takes a lot more money to retire

than what we our government and economy

originally anticipated in economics they

call this the old age dependency ratio

basically it's the number of individuals

older than 65 per 100 people of working

age the higher the ratio the greater the

burden on the current Workforce and

overall economy to support and provide

for the retirees government services and

programs will be stretched taxes will

need to be increased on the working

population to support the increased

expenses and potential pressure to

increase the retirement age for future

Generations the average old age

dependency ratio across oecd countries

like the UK Australia and Germany is 28

meaning for every working age people

there are 28 individuals who are 65

years or older the problem is this ratio

is projected to a 50% in the US by

2075 as housing education child care and

food prices continue to climb many

Americans are struggling to make ends

meet as a result more and more of the

younger generation are refusing to have

kids if you think about it our entire

social and economic structures have the

same issues as a Ponzi scheme if the

Next Generation isn't bigger than the

last it impacts almost everything

naturally as you get older and retire

expenses go down no more overpriced

drinks at the bar or buying the latest

tech gadgets but there is one expense

that will go up without fail one

particular crisis that baby boomers will

have to face headon a 2017 research

study found that a healthy 65-year-old

couple retiring will need to spend

$275,000 to cover their healthare cost

in retirement Dr V visits 20 different

pills and stress balls 70% of baby

boomers will need some form of long-term

care Assisted Living hospice care or

nursing homes the problem is the average

cost of a nursing home is between

$7,988

34 per month so where are baby boomers

expected to get this kind of money from

most don't have enough in savings Social

Security will be cut and 41k plans are

crashing but if you want to quickly save

more money using a savings goal tracker

and checklist is the most effective way

to do that get mine for free link down

below you might think one option is

Medicare basically federal health

insurance for people over 65 it's more

affordable than private insurance the

problem is Medicare doesn't cover

long-term care so the other option is

Medicaid basically health insurance for

lowincome Americans but to be eligible

for Medicaid you need to be at or below

133% of the federal poverty level

meaning most middleclass baby boomers

will be in between being too poor to

afford the care they need and too rich

to qualify for Medicaid but even if

they're able to get long-term care

there's still one more problem getting

into a nursing home is more challenging

than ever nursing homes are experiencing

Staffing shortages overcrowding issues

and many are actually operating at a

loss as a result more than 1,000 nursing

homes have closed since 2015 and more

are on their way out but there might be

one last Saving Grace for Baby Boomers

who still have a decent life into their

Twilight years their children the

problem is Millennials are in a tough

spot themselves housing affordability

stagnating wages and a looming Deb

crisis many won't be able to get time

off work to provide the complex ongoing

assistance their parents might require

and they can't afford to quit because

households can no longer support

themselves with a single income some

Millennials will be for forced to take

reduced hours or look for a job with

more flexibility potentially resulting

in lower pay meaning they'll be in a

tough spot of having to choose between

caring for their aging relatives and

their own Financial survival for me

personally family comes before

everything else but for many Millennials

they'll need to determine if they

themselves will have enough money when

they retire a 2006 research study found

that when family members over 50 take on

unpaid caregiving roles they'll lose on

average over

$300,000 in Lost income and benefits

which is a substantial amount but it's

more than just money there's the mental

physical and emotional exhaustion that

you will undoubtedly experience and

what's even more terrible can only be

summarized by this post you end up in a

strange Dynamic where you wish for the

day when you don't have to deal with a

daily caregiving stressors and then you

realize that you longing for the death

of your parents which is a strange

terrible place to be but what if I told

you that the baby boomer crisis should

be the least of your worries what most

people don't realize is that something

weird is happening to your job for one

of the first times in history people are

getting fired without actually getting

fired click here to learn what's

happening and how you can stop it from

happening to

you