Senior Spotlight: How COVID-19 Has Impacted Baby Boomer Retirement Trends

The Pew Research Center Reveals That 3.2 Million More Baby Boomers Retired In 2020 Than Years Prior

Welcome back to the Bobbi Decker Senior Spotlight! This week we are reflecting back on how the pandemic has impacted retiring Baby Boomers, and what that means in the years to come. The Pew Research Center reported this month that the pace of Baby Boomers retiring has accelerated in the past year.

As of Q3 2020, 28.6 million Boomers reported being out of the labor force due to retirement. During this same period last year, 25.4 million Baby Boomers retired. The annual average of retirees has been around 2 million since the year 2011, but the 2020 data indicates a retirement surge of 3.2 million MORE retirees than years past.

Trends within the 2020 time frame indicate that from February to March, retirement rates increased 2% among those over age 65, but remained unchanged for those under age 65. In addition, educational attainment levels have been linked to retirement rates, as the Pew Research Center reported a 2-percentage point increase in retirement from February to September among those with no education beyond high school. From a national perspective, the region with the largest surge in retirees is the Northeast.

What does all of this mean for you? First of all, if your retirement plans were impacted by COVID-19, you are not alone. The Pew Research Center believes that “the job losses associated with the COVID-19 recession may be contributing to the jump in Boomer retirements.” Second, if you find yourself retiring earlier than expected, now is an ideal time to look at your overall financial position and create some goals for 2021. Sample milestones might be meeting with your financial advisor to determine how long your current funds can support your current lifestyle, obtaining a complimentary home valuation, deciding if you plan to age in place or downsize and performing a cost benefit analysis of both options.

You know what they say about change… life is 10% of what happens to you and 90% how you respond to it.” Let us know if you need help in the latter; a little strategy can make a big impact towards living the retirement you want & deserve.