Baby Boomers are pushing the retirement option to the side

Channel: Fox Business
Published: 4 hours ago

Description
Barron's Associate Publisher Jack Otter on the economic impact from Baby Boomers working longer. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headquartered in New York — the business ca...



Transcript
Neil for all the young people out there baby boomers. That would be me we'll, never retire. We will work till i die. that is apparently a trend going on across the country actually across the world. one, that enormous economic, implications. , `` barron's' associate publisher. One of my favorite people on the show jack otter. What that could mean longer term for you and younger people as well. I ...
guess it means i won't get your job, neil no.

What is happening here now, a lot of it. Whatever the reasons for older baby boomers to continue to work, but it does have big implications right, what's going on here, sure. ! First of all, it is the perfectstorm in the sense that we're living longer, which is great. , but that means you have to pay for a lot longer, time. At the same time, pensions are going. The way of the dinosaurs. people are worried about social security. , the college age. They have children later. Now those kids are going to college.

They can't stop working. , they have to pay for college. This is happening at a time of massive disruption in the economy. So, to be honest with you, i think it is a fairly good sign that over 55s of unemployment rate of 2. 9 % - but i have huge advice for those people who have a kid in college - need to stay working which is disruptionis, accelerating so much that whatever You did in your 40s if you're in your late 50s will be very different. You have to learn new skills. If you work in a factory we're actually producing more than we ever have contrary to popular belief, but with fewer people.

, you need the person who needs to operate the robot, because 10 of your colleagues on the as assembly line will lose their jobs. One will be left to run the machine actually making stuff in the future. That is it true all over the economy, not just in factories. neil, a dramatic issue right now, but certainly not record unemployment among all groups baby boomers. But i wonder if we'remaking more out of this. in silicon valley, they have to raise wages to find new qualified people. complaining, not enough engineers coming out of school. a lot of people with blue-collar jobs. Their dad had a great income for life. Not only do they not have his pension but they're losing that job and have to go to much lower, paying more menial job.

, that is the underemployed. you're right. Unemployment rate is low, but there are a lot of people who are not making what they used to make. That is causing -- neil. Is it a damning commentary on things too that baby boomers can't afford to retire with added expenses, absolutely. , neil, that withcollege and they're, not in position where their parent were to retire, >, > totally. ? They don't have the pension. college accelerated in terms of tuition way. Past rate of inflation. health care is better but you're paying for it.

So that is a problem. Americans are left to do this. All by themselves. There is a financial writer investor bill bernstein. I heard him on a podcast. He said it is like you're gettingplane. You turn right to go to the seat. The flight attendant said no turn left you're flying today.

You need to create a income stream for 30 years after we're quit working. we're not prepared to do that. Nobody says how to save that much thegeeky word deaccumulation stage paying yourself. , you can't pull money out of a savings account until it goes dry neil. What will it mean for inheritances ? That is great question. at the wealthy end, it is fantastic. a trillion dollars a year being passed from boomers to the next generation. Those are the rich folks. for a lot of people, yeah, mom and dad will take a dollar with them. neil, your mother and i are keeping everything.

that usually gets this forlorn. What tell your son write you a check. toss that in the grave with you. , neil exactly. , sure dad you can have it.


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