Predicting the economy's rate of recovery - Input Junkie
Predicting the economy's rate of recovery|
|Date:||August 17th, 2012 05:05 pm (UTC)|| |
How quickly we forget the baby boom.
The leading edge of the baby boom hit social security 2 years ago, and we're still in the ramp-up part of that. D-Day was June 6, 1944. The baby boom started in 1945 and continued for about 10 years. The oldest of the baby boomers hit age 62 (the social security early retirement age) in 2007, and hit 65 (retire with full benefits) in 2010.
This means they stopped working at their jobs, and started living on a fixed income. They stopped contributing to their retirement plans and started withdrawing from them.
From a 401k perspective, they hit age 59.5 in around 2004 (withdraw without penalties) and start needing to take mandatory distributions in 2016.
Baby boomers are A QUARTER OF THE POPULATION.http://www.nytimes.com/2011/01/01/us/01boomers.html?pagewanted=all
This is an _issue_.
Re: How quickly we forget the baby boom.
Boomers were a big generation who worked during a prosperous time, so they paid a lot into SS. SS is set up so that their payments went into a trust fund to invest at interest, till that generation comes to retirement age.
Now that it's time for them to collect, some politicians don't want that trust fund to call in its investments.