Bad News for Boomers
Historic First in 2012 – Number of new seniors greater than number of new workers
Demographic trends will depress portfolio returns, researcher Robert D. Arnott warned in the Wall Street Journal. Money follows people, and in our consumer culture, filling their needs, wants and desires.
The corrollary: Healthcare consumption…and perceptions…will change.
Here’s the numbers:
- 2002- 1 person turns 65 for each 10 new people joining the workforce
- 2012- More people become seniors than enter the workforce
- 2022 10 new senior citizens for each new working-age citizen
DATAPOINT: In the 20 years from 2002 to 2022, the ratio of retires to workers is skyrocketing 100 fold. This is a function of demographics, regardless of the politics controlling healthcare costs.
WEINIGER’s OBSERVATION: Build strong relationships with people who perceive the value…and are willing to pay…for the services you provide.