The Coming Generational Storm

Generational Tsunami

Forget Bob Dylan's classic "Forever Young." Based on America's graying demographic, the new ballad ought to be "Forever Old – at least for the foreseeable future." The times they are a changing, and a tidal wave of aging baby boomers is about to slam down on our economy. Consider one statistic. Today, some 60,000 U.S. citizens are 100 or older. By the mid-century, there will be 600,000. Just to house the centarians, you would need a city slightly larger than current-day Washington, D.C. (population 567,000). Carefully consider the economic challenge presented by this aging population.

The Tip of the Age-berg

Why is the economy facing a coming generational storm? These facts help explain:

• If you were born in 1900, your life expectancy was 47.
• Your chance of living to age 65 or older was less than one in 20.
• Now, life expectancy is 76, and gains in life expectancy appear to be accelerating.
• By 2000, 12.4% of Americans were older than 65.
• The nation's population reached 76 million in 1900, doubled to 151 million by 1950 and nearly doubled to 286 million by 2000. Projections are it will pass 300...