The Impact of Baby Boomer Retirement on Corporate America
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The Boomer Effect: The Impact of Baby Boomer Retirement on Corporate America As seen throughout the media, the baby boomer population of 76 million will begin retirement in 2008 and 10,000 people will continue to join the ranks every day over the next two decades. This tidal wave will have a profound impact on society, culture, relationships, consumerism, the work force, economy and your business.
There is an unprecedented opportunity for corporate America to capitalize on the boomer retirement wave.
We assist our clients in crafting a boomer strategy and building enabling capabilities in the areas of technology, processes and change management. With $2.1 trillion in purchasing power, this group and their retirement milestone is too large a trend to ignore.
Marketers have been worshipping the coveted 18-34 demographic for decades. However, the reality is that the 40-60+ crowd is the real consumer of many goods and services.
Boomer spending encompasses 25-50% of the consumption in the U.S. and this market share is going to trend upward for several years to come. Demographers project that by the year 2030, the population of Americans older than 50 years will grow from 89 million to 111 million. The population of 18-49 year-olds will remain flat at 135 million.
This report provides a unique look at the challenges and opportunities facing corporate America due to this unique, cultural phenomenon. Some of the key impacts include:
- Healthcare: The higher patient volume with the aging of America will affect payors and providers, pharmaceutical R&D, prescription assistance programs, age-defying products, elder and hospice care, and assisted-living facilities.
- Financial Services: With $17-20 trillion in wealth, boomer retirement will significantly affect financial planning, annuities, systematic payout products, asset liquidation, risk aversion, estate and inheritance settlements, and an overall shift to income over capital growth.
- Workforce/HR: The reduction in worker-to-retiree ratio, departure of experienced talent, and alternative work arrangements (part-time and freelance) will shift the balance of the American workforce.
- Government: Key considerations include the stress on Social Security and Medicare, lower income tax receipts, the burden on younger workers for payroll taxes, and entitlement program reform.
- Society: Boomers are forecasted to engage in more travel, hobbies and activities, remarriage and new relationships, home and online computing, increased personal insurance, and demand new and repackaged products and services to address their evolving needs.
Capgemini transformation consulting can help your organization take a systematic, approach to identifying the key opportunities for capitalizing on this massive social shift. Our Accelerated Solutions Environment® provides a unique venue for assessing and synthesizing your readiness and business and technology solutions to address these dynamics.
For more information, please contact us.
