Baby Boom Generation: Retirement of Baby Boomers is Unlikely to Precipitate Dramatic Decline in Market Returns, but Broader Risks Threaten Retirement Security

TitleBaby Boom Generation: Retirement of Baby Boomers is Unlikely to Precipitate Dramatic Decline in Market Returns, but Broader Risks Threaten Retirement Security
Publication TypeReport
Year of Publication2006
AuthorsUnited States Governmental Office
InstitutionWashington, DC, U.S. Government Accountability Office
KeywordsDemographics, Net Worth and Assets, Public Policy, Retirement Planning and Satisfaction
Abstract

Question: Will the retirement of the Baby Boom generation (those born between 1946 and 1964) cause a stock-market melt-down as this generation shifts out of equities and into lower-risk assets? Finding: Using the NIA-funded Health and Retirement Study, GAO found that ...retiring boomers are not likely to sell financial assets in such a way as to cause a sharp and sudden decline in financial asset prices. This assertion is attributed partly to many boomers having few financial assets and also to the increase in life expectancy meaning that boomers will need to work longer and spread asset sales over a longer period of time. Despite this finding, retirement income security of boomers is likely to depend increasingly on personal responsibility, suggesting an important role for financial literacy initiatives.

Endnote Keywords

Baby Boomers/assets/retirement planning/Public Policy/Financial literacy

Endnote ID

62556

Citation Key5676