When looking at current events such as supply chain issues, drought, wildfires, etc, you may think a lower birth rate on this planet might be a good thing. However, if you look at several factors affecting your retirement, you may think differently. The birth rate in 1950 was 24.268 per 1,000 people. The birth rate in 2022 is 12.012 per 1,000 people. Less than half as much. What are the causes behind lower birth rates? And what does this mean when it’s your turn to retire?

When World War II ended in 1945, nearly 4 million American soldiers returned home and began starting families. From the years 1946 to 1964 there were 76 million births. We now call this generation the baby boomers, and they range in age from 58 to 76. The baby boomers are also referred to as the silver tsunami, and they are shaping the long term care industry.

The birth rate in 1950 was 24.268 per 1,000 people. The birth rate in 2022 is 12.012 per 1,000 people. Less than half as much.

Today’s younger Americans are facing things such as student loan debt, inflated housing prices, and healthcare costs. Every day on the news they hear of another climate crisis, they listen to their friends talk about childcare shortages, and they watch their childless friends take care of their plants and their pets and go on extravagant vacations. No longer is the pressure just to get married and have a family. Now parents are expecting their children to “find happiness” and maintain a work-life balance.

"Both Medicare and Social Security are funded by taxes on earnings and income. If there’s a smaller workforce, there’s less contributions."

How will this affect the economy in the future? Both Medicare and Social Security are funded by taxes on earnings and income. If there’s a smaller workforce, there’s less contributions. Cuts will be made, retirement ages will be moved out. There could also be labor shortages, particularly in the areas of long term care. The hours are long, the work is tough, and workers are finding other paths that pay better and expect less.

So what can you do? Well, be nicer to your nieces and nephews, that’s for sure. And check out long term care insurance. We all now the basics of supply and demand. If the supply of caretakers goes down, the cost will go up. So investing in your future today is the key. With a policy in place your retirement savings will be protected and your access to qualified care will be better. Speak to a specialist today and find out if one of our many options fits your goals and your budget.