Mad about the price of eggs, the dearth of new homes, and the list goes on? You could blame the baby boomers.
It’s increasingly convenient to pin the blame on the generation born in the roughly two decades after World War II. With an estimated 73 million boomers, ages 60 to 78, making up roughly one-quarter of the US population, their departures from the workforce will amount to a “silver tsunami,” says financial analysts and economic researchers. This looming demographic shift will upend life, work, and retirement.
By 2035, the Census Bureau estimates that older adults will outnumber people under 18 in the United States for the first time. Some see this as an unstoppable demographic disaster, but others view it as a chance to pounce. The phrase “silver tsunami” has been used to describe the opportunity for investors to put money into the initial public offering for a pharmacy focused on long-term care, as an aging population will need more drugs.
But some find the term offensive, calling it “fatalistic and negative.” Despite the criticism, it has been used by organizations such as the United Nations and National Cancer Institute, as well as government agencies in India and Malaysia. Investors and market strategists are using the term to make opposite predictions, with some foreseeing a housing market collapse and others predicting a sustained increase in home prices.
While the “silver tsunami” is a powerful metaphor, it’s perhaps safest to stick to a more neutral view: demographic trends will have a significant impact on the economy, but it’s not all doom and gloom. Changes are coming, but they may not be as devastating as they seem.
