Baby boomers, or boomers for short, are the generation born in the 1950s and are subject to harsh criticism from Larry Fink. In a recent letter to BlackRock investors, the boomer CEO said that the older generation has not been doing enough to support the younger, "economically anxious," generations and that they need to retire later than 65.
Fink said in the letter, "It is no wonder younger generations, Millennials and Gen Z, are so economically anxious." "They think that my group, the baby boomers, has prioritized our financial security above the interests of the next generation. And they are correct when it comes to retirement.
Along these lines, Fink said in the letter that boomers have a duty to restore the faith that younger generations "have lost in older generations" via investing.
He said, "Young people no longer trust older generations." It is our responsibility to retrieve it. Perhaps it would be a good idea for them to start saving for their long-term objectives, such as retirement.
In the letter, Fink also expresses his opinion that, given the nation's shifting demographics, elder generations need to retire at a minimum age of 65. According to him, the Social Security program was effective in the early 20th century because "more than half the people who worked and paid into the system never lived to retire and be paid from the system." individuals are now living longer than they did in that time period.
Fink said, "It is not just that more Americans are retiring; it is also that their retirements are getting longer." "Today, there is a 50/50 probability that at least one of you will get a Social Security payment until you are 90 if you are married and both of you are over 65. The US retirement system is under tremendous pressure as a result of all of this. According to the Social Security Administration, it will not be able to provide beneficiaries with their whole payments by 2034.
1935 saw the passage of the Social Security Act into law, and the 1960s saw an increase in the use of Social Security benefits. The concept behind Social Security is that the government deducts a certain amount from your salary, which it then pays you back in monthly checks when you retire.
Fink said in the letter that "no one should have to work longer than they want to." "But I do think it’s a bit crazy that our anchor idea for the right retirement age — 65 years old — originates from the time of the Ottoman Empire."
Boomers have recently been the target of a lot of criticism because to Gen Z's difficulties during the present challenging economic conditions. According to a new report by research company Redfin, baby boomers' decision to hang onto their properties from decades ago is making it difficult for millennials to locate cheap homes in the United States.
About 40% of boomers, according to the report, have been in their current residence for at least 20 years. Additionally, it revealed that whilst 55% of Millennials and 26% of Gen Zers own their homes, around 80% of boomers and 72% of Gen Xers do.
Speaking to Bloomberg about the survey results, Chen Zhao, the head of economic research at Redfin, stated that "when baby boomers hold onto their homes, which are often larger family sized homes, they create a shortage of homes for younger families who are trying to buy their first home or move up to a larger house." "In the absence of that, rising rates and prices for younger families exacerbate the market's already chronic affordability issue."
Fink said in the letter, "It is no wonder younger generations, Millennials and Gen Z, are so economically anxious." "They think that my group, the baby boomers, has prioritized our financial security above the interests of the next generation. And they are correct when it comes to retirement.
Along these lines, Fink said in the letter that boomers have a duty to restore the faith that younger generations "have lost in older generations" via investing.
He said, "Young people no longer trust older generations." It is our responsibility to retrieve it. Perhaps it would be a good idea for them to start saving for their long-term objectives, such as retirement.
In the letter, Fink also expresses his opinion that, given the nation's shifting demographics, elder generations need to retire at a minimum age of 65. According to him, the Social Security program was effective in the early 20th century because "more than half the people who worked and paid into the system never lived to retire and be paid from the system." individuals are now living longer than they did in that time period.
Fink said, "It is not just that more Americans are retiring; it is also that their retirements are getting longer." "Today, there is a 50/50 probability that at least one of you will get a Social Security payment until you are 90 if you are married and both of you are over 65. The US retirement system is under tremendous pressure as a result of all of this. According to the Social Security Administration, it will not be able to provide beneficiaries with their whole payments by 2034.
1935 saw the passage of the Social Security Act into law, and the 1960s saw an increase in the use of Social Security benefits. The concept behind Social Security is that the government deducts a certain amount from your salary, which it then pays you back in monthly checks when you retire.
Fink said in the letter that "no one should have to work longer than they want to." "But I do think it’s a bit crazy that our anchor idea for the right retirement age — 65 years old — originates from the time of the Ottoman Empire."
Boomers have recently been the target of a lot of criticism because to Gen Z's difficulties during the present challenging economic conditions. According to a new report by research company Redfin, baby boomers' decision to hang onto their properties from decades ago is making it difficult for millennials to locate cheap homes in the United States.
About 40% of boomers, according to the report, have been in their current residence for at least 20 years. Additionally, it revealed that whilst 55% of Millennials and 26% of Gen Zers own their homes, around 80% of boomers and 72% of Gen Xers do.
Speaking to Bloomberg about the survey results, Chen Zhao, the head of economic research at Redfin, stated that "when baby boomers hold onto their homes, which are often larger family sized homes, they create a shortage of homes for younger families who are trying to buy their first home or move up to a larger house." "In the absence of that, rising rates and prices for younger families exacerbate the market's already chronic affordability issue."
