Big Idea 2015: Rethink Your Business Due to Retirement Surge
John Burns
Working with a great team to solve today to help you navigate to a better tomorrow.
In this series of posts, Influencers and members predict the ideas and trends that will shape 2015. Read all the stories here and write your own (please include the hashtag #BigIdeas2015 in the body of your post).
More people were born in the 1950s (41 million) than any other decade, and they are dropping out of the workforce in droves. Those born in the 1950s will begin turning 65 in 2015. In fact, in the last 10 years, we have transitioned from roughly 2.5 million people per year turning 65 to 3.5 million, and that number will trend up to almost 4.5 million by 2025, before it starts trending down again.
This seismic shift will have a huge impact on the economy, as the traditional working age population of 20-64 will transition from growing 1.0 percent per year for decades, to growing 0.25 percent per year. 20-to- 64-year-olds earn and spend the most, so you can almost guarantee that the economy will grow more slowly than it has in the past.
While the economic growth will be slower than usual, and the burdens on Social Security will skyrocket, entrepreneurial opportunities will abound to serve an unprecedented surge in retirees who, by the way, also happen to be the most affluent retirees ever.
My big idea for 2015 is to plan for a slower growing pool of workers, and to take advantage of the surge in retirees, no matter what your business.
Systems Engineer Level III
9 年Drew Cope
Editor In Chief @ The Cagle Report | AI, Data Modeling
9 年Good article, and as one who studies demographic trends closely, its something I've been warning about for a while.There is one caveat to all of this, based upon the experience I'm seeing with a lot of retirees. Without the pressue of needing a paycheck, many Boomers are now spending more time volunteering than ever before, from taking on coaching Little League to running large advocacy non-profit groups that rival the size and complexity of larger corporations. I fully expect the NP sector to continue growing through the hump to 2025, before you reach the GenX trough.
Magnetricity/Technology / Invention !
9 年gravity is nothing more than magnetic force
Magnetricity/Technology / Invention !
9 年read my.profile lets build a pyramid using equal forced magnetic current. And the pulling force of Saturn on one of the 2 crescent moons we have each month
Real Estate Business Professional at Real Estate Advantage Group, Inc
9 年Baby Boomers aren't dropping out of the workforce but creating new entrepreneurial opportunities for the next stage in life! We are way to young to drop out, that's not who we are!