Tom Brokaw Looks at Baby Boomers
After writing of the Greatest Generation, former NBC anchorman Tom Brokow is now reporting on ours: the Boomer Generation. And what does he say about us? Well, you can guess a thing or two from the title of Brokaw’s program: “Boomer$!” His reporting begins this week— you’ll see “air” times at the end of this story, which is written by CNBC.com producer Paul Toscano.
Tom Brokaw
Just as the Baby Boom generation changed American culture in the post-World War II era, the first wave of Boomers reaching retirement age are changing how and where Americans spend their post-career years.
It’s a common perception that when Americans reach retirement age, they move to warmer, more senior-friendly environments far from the hustle and bustle of cities.
However, a 2005 study based on the 1990 and 2000 census reveals that for the decade before the turn of the century, the overwhelming majority of American retirees prefer not to move if they could avoid it, and have become more stable as they age, choosing to remain in their current homes or the same general vicinity.
In 2000, 41.5 million out of 46 million people (90.6 percent) aged 60+ remained in the same house or county, and the report identified this group as “residentially stable”. Less than 10 percent percent of the 60+ population (referred to as “residentially mobile”) moved across state or county borders. Reasons for this decision range from proximity to children and financial situations to community attachment and availability of amenities.
Tom Brokaw and Tom Hanks, baby boomer.
But with the Boomer generation (born between 1946-1964) preparing for retirement, this trend is set to change— and change dramatically. Unlike their parents and the generations before them, Boomers are increasingly willing to relocate upon retirement, and their choices of locations are becoming more active, youthful and far-removed from the stereotypical retirement spots.
The increased willingness of Boomers to move greater distances than previous generations during their retirement years is summarized by a 2009 research project by AARP, which studied information on how the recession has affected housing situations and decisions of Baby Boomers. The report came at a time when the first wave of Boomers was set to begin retirement, although in many situations the decision to retire may have been delayed because of the economic downturn.
The study found that only 79 percent of Baby Boomers want to stay in their current homes as they age, with older Boomers (83 percent) more likely to say they want to remain in their homes than younger Boomers (76 percent). Compared to the 1990 and 2000 census data, these numbers demonstrate a shifting trend: The later in the 20th century that a member of the population is born, the more likely they are to move (or want to move) their primary residence in retirement.
Tom Brokaw speaks with boomer Cheryl Elliot at the University of Michigan.
The report includes several telling examples of how pending retirees are dealing with the current state of the economy. One person described their experience in the wake of the housing crisis: “We sold one house at a loss, a significant loss. That combined with the fact that both my wife and I aren’t working regular jobs right now, that’s held us off from buying another house in a different community.”
Despite the economy, and perhaps because of it, the relocation trend Baby Boomers are demonstrating is likely to continue and may even accelerate. “The trend is definitely true, especially in places where taxes are high,” says Jerry Lynch, who is a certified financial planner and owner of JFL Consulting, which offers investment and retirement advisory services.
“People heading into retirement could pay for a portion of a new home just with the money they’d pay over that period in taxes, if they live in places like New York or New Jersey,” he says. He estimates that among his clientele in the tri-state area, 25-30 percent of individuals near retirement age are “adamant” about relocating, while another 25-30 percent would like to move, but are waiting to see what happens in the economy and where their children are moving, a number well above the national average.
For individuals looking to retire in the next 5-10 years, Lynch suggests an interesting strategy: “Start looking at places where you’d go on vacation, preferably somewhere you can buy a home at a discount. Because 401(K) contributions, in reality, are only tax-deferred (not truly tax free, as you must pay taxes on them in the future), you can reduce your contributions to your retirement plan and use the money on to help pay the mortgage interest or taxes on a home you can buy today. These payments are tax deductible, and provided that you live in the home for at least 2 out of 5 years, any gains in property value are tax free up to $500,000.”
Not only are Boomers more likely to relocate, but their choices of relocation destinations are changing as well, shifting the paradigm for aging in America.
Watch “Tom Brokaw Reports: Boomer$!“, Thursday, March 4 at 9pm ET on CNBC. The program will also air Saturday, March 6 at 7pm ET; Sunday, March 7th at 9pm ET; and Monday, March 8th at 8pm ET.
Category: Baby Boomers
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
Comments (15)
Trackback URL | Comments RSS Feed
Sites That Link to this Post
- Second Middle Age – New and Mysterious | Second Act Living | March 15, 2010
- Why Baby Boomers Don’t Make Good Parents | Healthy, Wealthy & Wise | April 2, 2010
I wonder if Mr. Brokaw will address the loads of Boomers who are still years away from retirement, who are still working and raising families. And I’m not just referring to those Boomers at the bottom edge of our generation, either.
As the link below suggests — and the many comments from Boomer parents that follow the article found there — lots of Baby Boomers of all ages have just recently started families and are reaching the top of their careers … retirement is not even on their radar screen yet.
Check out Boomer Generation Defies Labels at:
http://www.boomercafe.com/2010/01/22/boomer-generation-defies-labels/
I think that most people, baby boomers included, need to get a better idea of when to retire. When social security was set up at 65, life expectancy was 64….now it is in the mid- 80′s. You need to have a tremendous amount of money to be retired for 1/3 of your adult working life.
To your point (MP), it is no longer about retiring at 65, it is about what you want to do next and part of that is possibly again dealing with children and having a very successful career.
Hitting 65 does not mean you need to retire but rather, you are just hitting your stride!
Good comments all around. So what about the opportunity to volunteer? Yes, we may all be working on our second and in some cases third careers, we will be relatively healthy, and we have the knowledge and ability. Consider joining a service organization that will make a difference for your community, your country or the world and that will welcome all the skill sets you have developed. That third part of your life will be enriched by such an endeavor!
I had all intentions of working until I was 66 (retired at 63) -but that went out the window due to family situation – disabled husband and elderly parents plus adorable grandchildren . I do some volunteer work several times a week- it makes me appreciate what I have- and makes me fill like I am still contributing to society. So far I have good health -am debt free- go on several trips a year and have not applied for Social Security at this time.I know not all Baby Boomers can afford to retire-some have to work for several reasons. Thank God I have health care thru my husband. I am looking forward to seeing the show – Thanks Tom for reporting on us: the Boomer Generation.
Born at the end of 1958, no children or spouse to share expenses with or rely on, only about $25,000 so far saved for retirement (just started to save last 3 years), self-employed so no pension/401K,. More than likely no inheritance. Will have to work until 70 to continue to save and get the largest estimated monthly SSI payment if I wait until then.. Will have to keep up the good health through good nutrition, excising, no smoking or alcohol use. The special was good. Some sterotyping. Not all boomers got rich. Many of us struggled in the middle to lower income brackets. Some went on to get rich. Most of us though didn’t seem to know when the party would end via spending, not saving, partying etc. The party is over! Hope there is at least SSI left in 19 years for me or I will be screwed!
I was born in 1955 and felt that much of the show was about the older boomers who came of age in the 1960s. Can’t really synthesize the generation into an hour special. I came of age in the 1970s in the SF Bay area. I didn’t attend protest rallies or do a bunch of drugs. I did however read the first issues of Ms. Magazine and Mother Earth News and was very influenced with the natural foods and organic movement. That has stuck with me. Our family chose to adopt a cash – pay as we go lifestyle and live beneath our means rather than go for the big homes depicted in the special. We have come through this economic situation with no debt and home intact. Dave Ramsay should have been interviewed regarding Boomers and money. I plan to work until I’m unable to do so. I enjoy working and figure I will need to until at least age 75 or so. I do wish Brokow would have addressed the changes in religion and spiritual pursuits. Churches have changed quite alot.
What is the song that by the Beatles mentioned by Bill Clinton?
I don’t know many baby boomers just starting to have a family unless by surrogate or a wealthy older male with a younger woman (nothing new) but it’s usually a 2nd family that’s being started.
I watched some of Mr. Brokaw’s special (taped it) and it does cover boomers retirements that were affected by current economic conditions rending them at the same place as those who for whatever reason did not or could not save.
Interesting topic for sure.
meant to say “rendering”
Stella,
My husband and I are both Boomers — not wealthy older man/younger woman as you suggest–this is not our 2nd family and certainly no surrogates were involved. Boomer women in their 40s are still quite capable of having babies, thank you very much.
You must not have read this Boomer article and the dozens of comments following the article from Boomers with small children still at home.
Check out Boomer Generation Defies Labels at:
http://www.boomercafe.com/2010/01/22/boomer-generation-defies-labels/
As with everything else, our generation truly does defy labels.
Really off the mark. The Bommers would have NOTHING to do with the nonsense in Birmingham, etc. No Way. Completely out of line.
The Boomers were the hippies — period. Ecology, environment, polution, etc was everything. Brokaw is so out of it he has no idea what was really going on.
Cheers,
Steve
I am a boomer. We suck as a generation…absolutely the worst generation of Americans in the nation’s history. We have done NOTHING to enhance the status of this nation or the world. We sit around on our asses complaining about having to work too much; we want our kids to be our ‘friends’ instead of actually attempt to be parents, so we drink and smoke pot with them and want them to be just like “us” when we were kids; rather than hold them accountabe when they screw up, we protect them and try to circumvent societal rules to save their ass when they should be receiving consequences for their actions.
Basically, we SUCK!
Not enough can be made of the affect of “Youth Culture” on the Baby Boomer generation that resulted, among other things in an extended adolescence, the anti-war movement, sex, drugs and rock&roll. Of all the things that came out of “The Sixties” other than the Civil Rights movement, only the Rock&Roll of the day was all that good!
Parents always want more for their children than they were able to have. The “Greatest Generation” was hit with a double dose of reality in the forms of the “Great Depression” and “World War II.” They had to grow up fast and it showed in popular culture of the times, in the music, books and movies of the War Years. Cigarette smoking and consumption of alcohol skyrocketed during the 1940’s and carried over into the 1950’s. Before the war getting a High School education was sufficient to guarantee a good job, but not for Baby Boomers; a University degree was required, and even now, Post-graduate education is almost a minimum requirement in many of the best paid professions. The attention paid to the “Youth Movement” by main stream media, particularly television, starting in the 1950’s, only helped to perpetuate a state of teenage self-absorption that extend well into domestic and international politics that manifest itself in anti-draft rallies and opposition to U.S. involvement in the Vietnam War.
Interestingly, hard-core Marxists who rallied behind the George McGovern branch of the Democratic Party now have re-branded themselves as “Progressives” or just choose to remain under the radar altogether. Their influence can still be felt, however, when “Boomers” like Harry Reid and Nancy Pelosi stumble and talk about getting “the Big Corporations” and “The Rich” pay more in taxes. The same youthful political naiveté the possessed in “The Sixties” can still be seen twinkling in their eyes. The same look can still be seen in the eyes of the likes of Bill Clinton, a.k.a., “ The Boomer in Chief.”