The following recent article raises the question of Boomer spending, once they start spending post-workforce, and what that timeframe might look like. I’m sure it’s fairly typical of the held view in the market also. Only one thing missing is….
No mention of Boomer (or as I like to affectionately refer to them – PrimeTimers) Business Owners. What about those who are still toiling away in their own businesses, and are looking to EXIT over the same period. The Business Sale Tsunami is about to hit us allegedly. So what happens when the value they thought the business was worth is not what the market is willing to pay? Or if the business has not kept up with advances, in requiring an online presence for example, what then? What price? And then where does that leave their pseudo “Super”…
Business Owners beware… if you’re not preparing NOW for the SELL of your lifetime, then you may not end up in as good a place as you had expected, and dreamed of…
They might be still toiling but when they finally pull the plug, this generation will spend up big, writes Nicole Pedersen-McKinnon for TheAge.com.au.
Baby, the boomers are back! After having their retirement plans clobbered by the worst global downturn since the Great Depression, really the Great Recession, they are on the cusp of finally realising the life-after-work dream.
A staggering 46 per cent of boomers who are still toiling are doing so because of the credit crack-up, a study we conducted for the latest issue of our sister publication, Financial Review Smart Investor, has found.
But 31 per cent now expect to retire in the next five years, with almost another third in the five years after that. Their average age will be 64. To get to that point in this investment climate, though, they’ve had to make sacrifices beyond just delaying retirement. Twenty-eight per cent were forced to sell investments, probably at the worst time, and 18 per cent had to pull back on their lifestyle.
This is the first generation to retire with superannuation, which became compulsory in 1992, but that was too late and, thanks to the financial crisis, now far too little. A massive 78 per cent of boomers make additional contributions to redress their retirement funding shortfalls. So where will their money ultimately come from?
And don’t forget, there are also PrimeTimers who may also end up getting into Seniorpreneurship!
What I mean by that is, regardless of what Baby Boomers may have done in the past, they still want to continue to contribute. They don’t want to retire yet and nor do they want to work as they once did. So why not buy a smaller business, even online, and play to their hearts content.