The baby boomers have and are reaching retirement, and just by their shear numbers, have the potential to negatively impact economic growth. Certain sectors will boom, such as drugs and related health care, but over all, the economy will strain. Since growth is the prevailing mantra, the old folks are going to have to work longer, or get out the way. Or perhaps this will be the boomers' final legacy, sending the economy into a tailspin by merely getting old. Now that's irony!

US Medicare funding under threat

http://news.bbc.co.uk/2/hi/business/8047355.stm

13 May 2009

The US social security and Medicare system, which provide pensions and health care for older people, are set to run out of money sooner than expected. The costs of these two government entitlement programs has already reached $1 trillion (tn), or one-third of the entire Federal budget, and is expected to rise significantly as 80 million "baby boomers" reach retirement age over the next two decades.

The rising cost of providing health care - which is growing much faster than the overall growth rate of the economy - is putting pressure on the Medicare budget. President Obama has already signaled that containing health care costs is one of his top priorities. His Treasury Secretary, Timothy Geithner, said that the only way to make the system solvent in the future was "to control runaway growth in both public and private health care expenditures".

Retirement age 'should reach 85'

http://news.bbc.co.uk/1/hi/sci/tech/4726300.stm

17 Feb 2006

The age of retirement should be raised to 85 by 2050 because of trends in life expectancy, a US biologist has said. That will put a strain on economies around the world if current retirement ages are maintained, he warned. The Stanford researcher has been looking at relationships between historical trends in ageing, population growth and economic activity. In the US, the cost of social security and medical care would almost double if people retired at 65 under Tuljapurkar's scenario. But an increase in the retirement age to 85 would bring costs down to today's levels.

EU Faces Strain of Aging Population

http://english.aljazeera.net/NR/exeres/6E332658-01A5-4A5E-89EC-FD92B5ED5935.htm

The European Commission is warning governments they face lower growth rates and higher spending due to the number of elderly Europeans. A commission report to the 25 EU governments said: "The retirement of the post-war baby-boom generation as of 2010 and continuous increase in life expectancy means Europe will go from having four to only two people of working age for every elderly citizen by 2050."

Bernanke Voices US Deficit Fears

http://news.bbc.co.uk/2/hi/business/4807844.stm

15 Mar 2006

US Federal Reserve chairman Ben Bernanke has voiced concerns over the size of the US budget deficit. Mr Bernanke warned persistent deficits need to be curbed, particularly as an ageing population will raise pressure on government spending. Widening the deficit would put future living standards at risk, he added. US finances were expected to come under "severe pressure" as baby-boomers began to retire and collect their Social Security and Medicare benefits.