Baby Boomers: All You Ever Needed to Know

On January 1, 2006, Kathleen Casey-Kirschling turned 60 years old. She is the nation's very first Baby Boomer. In many ways, Casey-Kirschling is a microcosm of the Baby Boomer generation. She's been married, divorced and remarried. She has children and grandchildren, and she has carved out a career for herself. In almost every way, Casey-Kirschling is the typical Baby Boomer.

She has also been studied and documented, much like the generation for whom she has become a reluctant spokesperson. No generation has ever been put under the microscope like the Boomers, and mountains of data have been accumulated to enable folks to get a handle on this society-changing generation.

What have we learned?

But numbers alone can only tell us so much about the Boomers. Next up, we'll take a look at who these people are by their cultural, political, and economic legacies.

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The easiest description of the Baby Boomer generation is that it comprises peo­ple who were born in the United States between 1946 and 1964. However, they are often broken down into two distinct groups: Those born between 1946 and 1954 (often called Leading-edge Boomers), and those born between 1955 and 1964 (often called Shadow Boomers, or Generation Jones).

The single, defining historical event of the Baby Boomer Generation was the Vietnam War. Since Shadow Boomers born after 1955 were not eligible for the draft, they had a much different experience than the Leading-edge Boomers, creating a generation gap in the middle of a single generation.

­ In 1985, Howard Schuman and Jacqueline Scott asked people "What world events over the past 50 years were especially important to you?" The answers for the two groups of Boomers were very different. Leading-edge Boomers mentioned the assassinations of JFK, Robert Kennedy, and Martin Luther King; man walking on the moon; the Vietnam War; sexual freedom; the civil rights movement; and protests and riots. The Shadow Boomers, on the other hand, mentioned Watergate, Nixon's resignation, the Cold War, the oil embargo, massive inflation and gasoline shortages.

All differences aside, there is one thing that culturally unites the Boomers like no other: television. The Baby Boomers were the first generation raised on TV. They could share cultural events and milestones with everyone in their age group, no matter where they were geographically. They all watched “Bonanza” or “Leave it to Beaver,” and saw the Vietnam War in their living rooms while they were coming of age. These shared moments helped craft a generational bond like no generation before them.

Another cultural element that separated Boomers from their parents was Rock and Roll. Artists like Elvis Presley, Little Richard, Buddy Holly, and later Bob Dylan, The Beatles, The Rolling Stones and The Who took over the airwaves and gave the Boomers a generational identity.

That identity is, in many ways, deeply skeptical. Boomers in their 20s coined the famous phrase "Don’t trust anyone over 30" at the height of the Vietnam War. The events of Nixon and Watergate cemented the skepticism of authority. Instead, Baby Boomers put their trust in themselves. They have been called the "Me Generation" because they were the first generation to take a breather between childhood and adulthood and explore being young. They got married later, had kids later and spent lavishly on themselves.

Conversely, they are also one of the most active and selfless generations ever. Their continual fight against injustice created the women's movement, the civil rights movement, Vietnam War protests and much more.

 

In 1992, Bill Clinton (born in 1946) became America's first Baby Boomer President. He was followed eight years later by America's second Baby Boomer President, George W. Bush, also born in 1946.

They won't be the last Baby Boomer Presidents. It's quite conceivable that a Baby Boomer will be in the White House for another 20 years or more. Combined with the Boomer Generation's majority in Congress (62 percent in the House of Representatives, 46 percent in the Senate), Governorships (74 percent), and State Legislatures (between 54 and 58 percent) the generation that once vowed to fight authority has suddenly become the authority.

However, long before they controlled the halls of power, Baby Boomers shaped the political arena. As leaders in the civil rights movement, the feminist movement, gay rights, handicapped rights and the rights to privacy, the Baby Boomer generation has been at the forefront of the expansion of individual freedom.

But it's very difficult to pin Boomers down as being either liberal or conservative. A 2004 nationwide survey by the AARP found that a solid majority of Baby Boomers support abortion rights, gun control and stem cell research -- strongly liberal causes. At the same time, the survey found strong support among the Boomers for the death penalty and fiscal conservatism -- strongly conservative positions. The survey also found that nearly 60 percent of Baby Boomers believe the government has a responsibility to provide health care to all citizens, and more than 70 percent say the government must protect the environment.

So while we aren't quite living in an all-Boomer world, it's safe to say the Baby Boomer generation, having spent its youth fighting power and demanding change, has become the dominant force in the political arena. Time will tell what they do with the power they now wield.

If there's one thing that unites Boomers of all shapes and sizes, it’s consumerism. From the very beginning, marketers recognized the possibilities presented by this uniquely large generation. At every age of their lives, Baby Boomers have been the largest demographic to target, and marketers have perused them diligently.

In the 1950s, teenage and younger Boomers bought hula hoops and Frisbees. In the ‘70s and ‘80s, they settled down and sent housing prices soaring Today, there’s an explosion in computer gadgets meant to ease a generation into their golden years. Baby Boomers have driven the economy as they aged with their massive spending power. Now, as they oldest Boomers hit 60, marketers are tasked with keeping up with the unrelenting demographic shift.

In the 2000 Census, there were an estimated 35 million people in America 65 or older. By 2030, that number is expected to more than double to 71.5 million Americans. That group will contain almost 20 percent of the nation's population, where today the 65 and older group makes up only 12 percent.

Not only will they be the largest Golden Years demographic in history, they will be the richest, controlling 40 percent of the nation's deposable income and 77 percent of private investments. Clearly, this is the demographic that advertisers will want to tap.

 

So looking ahead, where are the growth industries for companies wanting to market to the Boomers? One good guess is health care. The Baby Boomers have spent their lives being healthy, eating healthy, exercising and basically refusing to grow old. Just because they are becoming chronologically older doesn't mean they intend to let go of their fit and healthy lifestyle. Also, the generation that followed them is much smaller and won't provide nearly enough elder care workers to help take care of the Boomers in their golden years. Many companies see a huge opportunity in the making.

But these are the Boomers we're talking about, the generation that fell in love with gadgets and computers. So a company that can create a seemingly futuristic gadget that deals with health care is at the top of the game.

In Japan, where the percentage of seniors is rising even faster than in America, you can purchase a toilet seat that will weigh you, take your temperature, and test your urine and blood for blood sugar and cholesterol levels. The seat then automatically sends the results to your doctor's office.

It may sound like something out of “Star Trek,” but as more Baby Boomers cross into their 60s and 70s, the need for more high-tech health-care devices will become a reality.

Now that the Baby Boomers are reaching retirement age, the world's golf courses and cruise ships are going to be overbooked, right?

Not so fast.

A study by Cornell University found that about a third of all Baby Boomers are planning a second career in their Golden Years. With over 78 million Boomers in America, that's 26 million sexagenarians planning to re-enter the workplace. That's a lot of workers.

The question to ask is: Why? Why, when they could be planning years of leisure and travel, are these Boomers sending out resumes and re-entering the workplace?

For some it is a matter of finances. According to the Congressional Budget Office, 25 percent of Baby Boomer households don't have enough savings put away to retain their standard of living upon retirement. Even though the Boomers have, on average, earned more money than their parents, many have spent it all already. They can't afford to retire and need income, so they're heading back to work.

But starting a second career isn't something limited to the oldest Boomers. Many are finding new careers in their 40s and 50s due to circumstances beyond their control, like losing their jobs. New York Times economics reporter Louis Uchitelle estimated that more than 30 million workers--mostly Baby Boomers--have been downsized out of a job since the 1980s. So instead of decades of leisure and relaxation, many Boomers are facing years of hourly wages in part-time jobs to make ends meet.

On the other side of the coin are Boomers who have plenty of money. Yet many of these affluent Boomers are also going back to work. Why? They cite a chance to do something more meaningful and fulfilling with their lives.

Tired of years working a thankless job that brought in a steady paycheck, Boomers are branching out in their mature years. Some are answering a desire to give back to the society that enriched them. They’re turning their experience in the corporate world into a $38,000-a-year job teaching public school or trading in a six-figure salary to head a non-profit company. Others are chasing their own dreams, turning a beloved hobby into a start-up company, or interning at the bottom rung of a new career. For these, money is not the object; personal satisfaction is the driving motive.

But going back to work is just one way the Baby Boomer generation is changing the way we look at retirement.

Baby Boomers are healthier and better educated than their parents were at this age. And they're living longer, well into their 80s. That's a lot of time to sit back and take it easy. But Boomers aren't interested in relaxing.

A 2005 study by Harris Interactive for Merrill Lynch found that 76 percent of Baby Boomers intend to continue working and earning in retirement. However, not all want to work full-time -- 42 percent plan to cycle back and forth between periods of work and periods of leisure, while 35 percent who plan for regular full or part-time work. Only 17 percent expected to be done with working altogether once they retire. This is a generation that intends to stay active.

Aside from work, one way Boomers are staying active is through volunteering. The web site http://www.getinvolved.gov, sponsored by the Corporation for National and Community Service, specifically appeals to Boomers who grew up in the age of John F. Kennedy, who famously called their generation to service.

And the appeal seems to be working. A 2005 study by researches at RTI International found that nearly one-third of all Baby Boomers serve as volunteers in one way or another. This involvement spreads across both genders. The study found that while women are 25 percent more likely to volunteer than men, Baby Boomer men were more likely to volunteer than men in any other age group.

This Baby Boomer Volunteering Boom is being felt in all areas of the non-profit world. Boomers have a lot of experience, and are spreading that experience around. According to the Bureau of Labor Statistics, Boomers are more apt to volunteer with more than one organization than any other generation of volunteers. So not only are more Boomers volunteering, but they're involved with more organizations, and helping more people.

So as the oldest Baby Boomers cross over into their 60s, the "Me" Generation is turning into the "We" Generation.

In 2006, Kathleen Casey-Kirschling and the rest of the initial Baby Boomers officially turned 60. In 2008, they will turn 62 and be eligible to start drawing early retirement benefits from Social Security. Three years later, they'll be 65 and eligible for Medicare.

And this creates a problem.

According to the 2007 Annual Report from the Social Security and Medicare Board of Trustees, Social Security will start to cost more money to run than it takes in by the year 2017. There is currently a large surplus, but it will be drained by the year 2041. At that point, Social Security will only be able to pay out 75 percent of its benefits.

The news on Medicare is even worse. We dip into the Medicare surplus in 2013, and drain it by 2019. Then Medicare can only pay for 79 percent of its costs.

The reason for this short fall? The Baby Boomers.

To get the full scoop on Social Security and Medicare, check out our How Social Security Works and How Medicare Works articles. But here's the gist of the coming crisis.

Social Security and Medicare are paid for mostly through payroll taxes. The more people that work, the more money that goes into the systems. For many, many years, the Boomers did their part, worked their jobs, and put money into the system. Since there are so many Boomers, there were a lot more people putting money into the system than taking it out.

But when the Boomers start to retire, we will lose a huge group of people putting money into the system and replace them with a huge group of people taking it out of the system.

Like everything else they've touched, Baby Boomers are redefining how people prepare for the end of their life. One new trend is the ethical will. Instead of just preparing a legal document that divvies up their loot, Boomers are creating something that will leave behind not just their valuables, but their values. These ethical wills are part family history, part personal story and part guidepost through the dearly departed's value system. They allow the dead to be remembered for who they were, rather than just what they had.

Boomers are all about their own individuality, and the end of their lives is just one more chance to place their own stamp on the world. Gone are the days of the quiet, somber memorials and reading of the will. Instead, Boomers are putting on a show. They don't want to be memorialized -- they want to be celebrated. What Boomers want is an experience that they feel will best sum up their life. They don't see themselves as stuffy, somber entities -- they're young, they're hip -- they're the Boomers. So they're taking matters into their own hands to ensure they get the service and experience they want, bringing new consumer expectations and fewer attachments to churches and time-honored traditions. This shift has funeral directors scrambling to double as party planners.

One factor that is playing into this reinvention of the funeral is the rise in popularity of cremation. According to the Cremation Association of North America, 31 percent of Americans were cremated in 2004, up from just 6 percent in 1975. And that number is expected to rise. Cremation means no body at the service, which makes it easier to forgo the somber tone.

Also, Boomers are rethinking what to do with the remains that they leave behind. One idea is the concept of the eco-cemetery. People are buried un-embalmed in a shallow hole without a casket, then their body becomes fertilizer for the wildflowers that grow. This option also helps preserve the land by designating it a cemetery, which ensures that no developer can build on top of you.

For Boomers looking for something ever-lasting, a company in Chicago, LifeGem, will extract 8 ounces of someone's cremated remains and compress it to create an actual diamond. You could wear your loved one and keep them close to your heart for the rest of your life!

For more information on Baby Boomers, check out the helpful links on the following page.