Baby Boomer Era/Retirement Enjoying - Assignment Example

Demographer refers baby-boomer era as the generation born between 1947 and 1966. Last Centuries, the world had eight different cohorts each having a different impact on the economy and society. The Baby-Boomers account for over 30% of the world population. This group has a strong impact on the world market (Harvey 2008). Baby-boomers will continue having the massive impact on the structure of the world's population Baby-boomers consists of people between the age of 40 years and 59 years. This group has begun retiring from the workforce.

Following this era, the world's population and birth have drastically declined as the population rises. The reduced growth rate attributes to low births while the rise in population is because of longer life expectancy. The growth rate spike occurs after the Second World War which is consistent with the rising birth rate. The effect of Baby boom is recorded with the rise in the middle-aged population, and the future middle-aged group. In 2005, the birth rate was 1.03 percent of the world population; the number of dependents is increasing and may become a set back on the economy and to the government.

The ratio of the baby-boomer era to the whole population has risen since 1996, and this will increase overtime (Harvey 2008). Harvey investigated the spending and saving habits of baby-boomers who consider themselves as not ready to retire. This problem of baby-boomers not ready to retire is on the IRA and 401(k) performance. The report looked at the baby-boomers spending habits and, comparison made between the spending habits of today's baby-boomers and those 20 years ago. Their real incomes have not changed, but their disposable income on certain products has increased.

This behavior attributes to the economy state of many nations. For beginners baby boomers spend more on education (Coleman, Hladikova & Savelyeva 2006). This is because the cost of education is higher than the income. Since 1990, the education cost had increased by 80% for 45-54 old and 22% for 55-64 old. Another cost baby boomers incur is the health care cost. These include the insurance premium expenses, out-of-pocket cost, adding that the cost of health care has wiped out the gains in income of the median family over the last decade.

The baby boomers also take care of their parents; medical bills, paying loans, spending money, and transportation cost. Consequently, they are spending more on the mortgage debt. The percentage of home buyers had increased from 28% to 35% in 1985 and 2011 respectively. The boomers are spending less on entertainment: they have not increased their expenditure on dining out or entertainment. Other cost that has fallen for the boomers includes food purchases, household furnishing, and clothing expenses.

There has been a belief that the rate of saving among the boomers has been stagnant, or even reduced. Saving habits and retirement account have played a bigger role for baby boomers (Coleman, Hladikova & Savelyeva 2006). Boomers retirement saving is less than 10 percent; recommended as the income share dedicated to savings. Therefore, for baby boomers, mush of their spending is on education, health care, mortgage debt, and parenting. They spend less on entertainment, clothing, food, and household furnishing.

However, their saving characteristic is less than the recommended 10 per cent. Migration of the baby boomers affects the policies of rural development and the rural economies. The social and economic impact from