STUDY
Boomer
Bookends
Insights Into the Oldest and Youngest Boomers
FEBRUARY 2009
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The MetLife Mature Market Institute®
Established in 1997, the Mature Market Institute (MMI) is MetLife’s research organization and
a recognized thought leader on the multi-dimensional and multi-generational issues of aging and
longevity. MMI’s groundbreaking research, gerontology expertise, national partnerships, and
educational materials work to expand the knowledge and choices for those in, approaching, or
caring for those in the mature market.
MMI supports MetLife’s long-standing commitment to identifying emerging issues and innovative
solutions for the challenges of life. MetLife, a subsidiary of MetLife, Inc. (NYSE: MET), is a leading
provider of insurance and financial services to individual and institutional customers.
For more information about the MetLife Mature Market Institute, please visit:
www.MatureMarketInstitute.com.
Contact us:
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(203) 221-6580 • Fax (203) 454-5339
[email protected]
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© 2009 MetLife
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Table of Contents
Introduction and Key Findings.....................................................................................4
• Overview.................................................................................................................4
• The Oldest and Youngest Boomers: Two Generations in One........................................4
• Summary of Key Findings.........................................................................................5
The Oldest Boomers: Today & What’s Changed Since 2007..............................................7
• Relationships...........................................................................................................7
• Health.....................................................................................................................7
• Employment/Retirement...........................................................................................7
• Housing................................................................................................................10
• Finances................................................................................................................10
The Youngest Boomers: Today & How They Compare to the Oldest Boomers.................13
• Relationships.........................................................................................................13
• Health...................................................................................................................14
• Employment/Retirement.........................................................................................15
• Generational Identity..............................................................................................16
• Advantages and Disadvantages of Getting Older........................................................17
• Housing................................................................................................................17
• Finances................................................................................................................18
Summary and Implications..........................................................................................23
Methodology. ...............................................................................................................25
Appendix.......................................................................................................................26
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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Introduction and Key Findings
Overview
The Mature Market Institute (MMI) study,
Boomer Bookends: Insights Into the Oldest and
Youngest Boomers, compares the “leading edge”
Boomers (those born in 1946) and the “trailing
edge” Boomers (those born in 1964).
This is the second year in a row that the MMI
conducted a nationally representative survey
of the Oldest Boomers, those turning age 63
in 2009. The sample included respondents
from the 2007 MMI study, Boomers: Ready to
Launch, who agreed to be re-contacted, as well
as additional new respondents.
In this study, to compare and contrast the
Oldest and Youngest members of the Boomer
generation, the MMI also conducted a
comparable nationally representative survey of
the trailing edge Boomers, those turning age
45 in 2009. Asking many of the same questions
to each group, the MMI found that they share
many traits and perspectives in common, yet
have different attitudes, life experiences, and
goals, just as oldest and youngest siblings do in
the typical American family.
The Oldest and Youngest Boomers:
Two Generations in One
The Boomers are a large generation with an
18-year age spread that began when the GIs
returned from World War II in 1946. Some
consider it two generations in one. Many more
Boomers were born in the later years of the
Boomer generation than in the earlier years. The
Older Boomers, born between 1946 and 1955,
represent 36.7 million, of which 2.7 million
were born in 1946. The Younger Boomers, born
between 1956 and 1964, represent 40.6 million,
of which 4.6 million were born in 1964.
Despite the somewhat smaller numbers, the Oldest Boomers have received most of the attention
in the media and literature about the generation.
The Oldest Boomers, who were often associated
with a rebellious and influential youth culture,
are now facing the contrast of growing up in the
sixties, and now living through their sixties. As
children, they tended to live in more traditional
households, with a stay-at-home mother. The
economy was good, and the baby boom resulted
in the growth of the suburbs, schools, and consumer demand. By the time the Oldest Boomers—the high school class of 1964—entered early
adulthood, they found themselves at the forefront
of a decade of both social unrest as well as social
Graph 1: Number of Live Births in the United States from 1946–1964
Births (in millions)
4.5
4.0
3.5
3.0
1946
1964
Source: U.S. Department of Health & Human Services, Centers for Disease Control and Prevention.
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progress. Now they have reached a new stage
of life where their primary careers are winding
down, and they are figuring out what they will do
when they retire and how to pay for it.
The Youngest Boomers, on the other hand, are
now middle-age, are at their peak earning years,
and have younger children still at home. Like the
Oldest Boomers, they were influenced by their
experiences as children and young adults, but
they grew up in different times. Instead of living
in families where their mothers stayed at home to
raise the family, they were more likely to be latchkey children. Women were entering the workforce
in growing numbers, and the divorce rate was
increasing. The economy was not as strong as it
had been when the Oldest Boomers were growing up, so in contrast to the older cohort, they
were less likely to believe that the world was full of
opportunity. Now, as they look to the future, they
understand that they very likely will not have a
Defined Benefit Plan and will need to take more
responsibility for their own financial future.
The life stages and life experiences of these two
Boomer groups are very different, resulting in an
interesting comparison of how they view relationships, health, employment, retirement, and
finances. Yet they share the same generation, and
by sheer size alone, they have influenced the social, political, and cultural agenda of the nation.
Summary of Key Findings
Overall, the fact that the Oldest and Youngest
Boomers—the Boomer Bookends—are quite
different is not particularly surprising, especially
when the reality of the 18-year age span and the
Current Census Bureau estimates
indicate that there are 70% more
Youngest Boomers (4.6 million) than
Oldest Boomers (2.7 million).
vastly different social climates of their formative
years are considered. The results point to the
mistake that many people make of either looking at the Boomers as one monolithic group or
not recognizing the dramatic shift in attitudes
and behaviors that took place during this transitional generation.
A large majority of the Oldest Boomers
embrace the Boomer moniker as a
description of their generation.
However, almost half of the Youngest
Boomers do not like being associated
as a Baby Boomer, and, in fact, about
one-third prefer to be seen as part of
Generation X, the cohort immediately
following the Boomer demographic.
• The Oldest Boomers 2008
• Few of the Oldest Boomers surveyed have
fully retired. A majority remain in the
workforce, half work full-time. They report being healthy—although health issues
are beginning to play a major role in their
capacity to work, and a leading concern is
affordable health care. In reflecting on their
family life, they feel that they have done
a good job of caring for themselves, their
loved ones, and their communities. In fact,
almost six in ten have provided considerable financial assistance to their children
and grandchildren in the past five years. A
somewhat surprising fact is that, despite the
economy, nearly a quarter say they have no
concerns about retirement.
• The Oldest Boomers: What’s Changed from 2007 to 2008?
• The re-contacted Oldest Boomers have
actually “stayed the course,” despite a year
of tremendous financial market upheaval.
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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Introduction and Key Findings
f those who said they planned to take
O
Social Security retirement benefits at age
62, the majority did. Similarly, of the Oldest
Boomers who indicated that they would apply for Social Security retirement benefits at
age 63 or later, the majority of these respondents have not changed their plans. Only
about one in ten had a change in their employment status in the last year or was planning for the change before the end of 2008.
Despite their age and the fact that they do
not have as many years to catch up as their
younger counterparts, a small percentage of
these Boomers report achieving their retirement savings goals, and nearly half say they
are behind in their retirement savings.
• The Boomer Bookends and How They Differ
• A large percentage of Youngest Boomers
disassociate themselves from being a
“Boomer” and would rather consider
themselves as Generation X, while Oldest
Boomers generally like the Boomer connection. The Youngest report that they will
consider themselves “old” at age 71 while
their older counterparts say 78 is “old.”
Most do not plan on taking Social Security
benefits at age 62, but instead plan to take
it at 64. Yet, most believe that they will be
able to fully retire by age 64, in contrast to
the Oldest Boomers who plan to retire at
age 66. The two groups differ on concerns
about retirement. The biggest concerns of
the Youngest Boomers are outliving retirement money and having to work full- or
part-time. The Oldest Boomers’ biggest
concerns, by contrast, are being able to afford health care and staying productive and
useful. However, a quarter report having no
concerns. The Youngest Boomers expect to
rely on Social Security for a third of their
income in retirement.
Born in 1946, Former First Lady Laura Bush is an Oldest Boomer.
Born in 1964, First Lady Michelle Obama is a Youngest Boomer.*
*Neither endorses this study.
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The Oldest Boomers:
Today & What’s Changed Since 2007
Relationships
Similar to what was found in 2007, the Oldest
Boomers today have an average of 2.1 children and
2.6 grandchildren and are primarily empty nesters,
with few dependents living at home. Of those with
children, about one in five (19%) have children
living with them. Over three-quarters (77%) of the
Oldest Boomers surveyed have grandchildren.
With regard to their parents, two-thirds (67%)
do not have a living parent. One-third (33%)
have at least one parent living. Of those with
at least one parent alive, one in seven (14%)
are providing regular care to a parent/relative,
spending an average of 11 hours per week providing care. In fact, almost one-quarter (23%) of
those providing regular care are spending more
than 20 hours a week doing so (see Figure 1).
• What’s Changed
• The Oldest Boomers experienced few major
family changes in the past year, except for
having more grandchildren. About one in
five (17%) had more grandchildren in the
past year. There also has been little change
with regard to their parents. Just 2% lost a
parent in the last year.
Health
Compared to 2007, their health has remained
rather consistent. When asked to rate their health
in 2008 compared to 2007, 70% of respondents
rated their general health as unchanged. Of the respondents whose health had changed, 17% reported their health as being better, and 13% reported it
as being worse. Among those who said it is worse,
40% had a major health problem.
Employment/Retirement
Fifty percent of Oldest Boomers are working
full-time. Only about one-fifth (19%) are fully
retired. One in ten (11%) are on Disability and
9% are currently collecting Social Security
retirement benefits. Of those working full-time,
15% plan on making a career change either
before or after they retire, with more than half
Figure 1: Providing Regular Care to a Parent or Relative
Oldest Boomers
Are you and/or your spouse/domestic
partner currently providing regular care
to a parent or relative older than 65?
86%
Yes
No
14%
How many hours per week are spent
providing this regular care?*
Less than 2 hours
2-4 hours
5-7 hours
8-10 hours
11-15 hours
16-20 hours
More than 20 hours
11%
21%
14%
14%
9%
5%
23%
*Asked of those who indicated that they currently provide regular care to a parent or relative older than 65.
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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The Oldest Boomers: Today & What’s Changed Since 2007
Figure 2: Current Employment Status*
Oldest Boomers
Employed full-time
Fully retired, not working
On Disability
Retired but working part-time/seasonally
Self-employed
Employed part-time
Looking for work
50%
19%
11%
9%
4%
3%
2%
*Asked of both re-contacted and new respondents.
of these (56%) reporting they would make this
change after retiring. Only 2% report they are
looking for work (see Figure 2).
When asked what their biggest concerns regarding retirement are, the two most often reported
among the Oldest Boomers were being able to
afford health care in retirement (18%) and staying productive and useful (18%).
• What’s Changed
• One in ten (11%) of the re-contacted Oldest
Boomers had a change in their employment
status in the last year or was planning for a
change before the end of 2008. Of those, over
one-quarter (28%) are now fully-retired, 27%
are now working full-time, and 14% are now
retired, but working part-time or seasonally.
Figure 3: Reason for Not Retiring at 62 As Planned*
Oldest Boomers
Not 62 yet
32%
Economy/
stock market
26%
Need the
money/income
20%
Like to work/
bored not working
17%
*Asked of re-contacted respondents who indicated that they were planning to retire in 2008 and did not.
Multiple responses permitted.
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• Retirement plans for some of the Oldest
Boomers have changed since last year. A very
small percentage (11%) of those re-contacted
said in last year’s survey that they planned
to retire fully at age 62. Of those, only
15% actually retired fully in 2008. Six percent
retired, but are working part-time or seasonally. Others are still working but went from
full- to part-time or vice versa or are now
on Disability.
• Seventy-one percent of this small group
who planned to retire fully at age 62 did not.
Of those, one-quarter (26%) reported the
current economic situation as the reason.
One in five (20%) reported they need the
money or income. Slightly less (17%) said
they like to work and/or are bored not working (see Figure 3). Interestingly, the reason
given most was “Not 62 yet.” This is confirmed
by vital statistics data from the U.S. Department of Health & Human Services, 31% of the
births in 1946 were in the months of October
through December.
• For those who originally planned to retire fully
after age 62, fewer have changed their plans. Two
out of five (38%) of those re-contacted were planning to retire fully at age 63 or later when asked
in the 2007 survey. Of those, two-thirds (67%)
have not changed their planned retirement age.
However, 31% plan to retire later than they reported last year, and only 2% plan to retire earlier.
• There is considerable difference between plans
to access Social Security at age 62 and plans to
retire at that age as referenced above. Since 2007,
plans on when to start collecting Social Security
benefits have changed for a small minority of
respondents. Almost one-quarter (23%) of those
re-contacted said last year that they planned on
taking their Social Security benefits at age 62
(see Figure 4). Of those, 75% have done so or
are planning to before the end of 2008. Of the
22% who have since decided not to collect Social
Security this year, 33% report that they are not
ready to retire, or prefer to keep working. Almost
one-quarter (24%) say they need the employment income.
Figure 4: Social Security Retirement Benefits*
Oldest Boomers
Last year, you told us you were planning to take
your Social Security retirement benefits at age
62. Are you collecting now or going to apply
for Social Security by December 31, 2008?†
3%
22%
75%
Yes
No
Don’t know
Can you please tell us why you decided
not to collect Social Security?††
Not ready to retire/
prefer to keep working
33%
Need the employment
income
24%
Not eligible yet/not
62 yet
17%
Need health/medical
insurance
16%
Want to wait/build up
entitlement
Penalty on earnings if
retire early
8%
5%
*Asked of re-contacted respondents only.
†
Asked of those who indicated that they were planning to take Social Security at age 62 in 2007.
††
Asked of those who indicated that they were planning to take Social Security at age 62 in 2007 and did not.
Multiple responses permitted.
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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The Oldest Boomers: Today & What’s Changed Since 2007
• Almost half (48%) of the re-contacted Oldest
Boomers indicated in 2007 that they would collect Social Security after age 62. Since last year,
the majority of these respondents (80%) have
not changed their plans. However, 17% indicated
that they plan to collect Social Security benefits
later than originally planned, and 3% indicated
they would collect Social Security benefits earlier
than originally planned.
• Respondents who are delaying collecting Social
Security beyond their planned date are doing
so to keep on working to earn more income.
More than two in five respondents (44%) who
have delayed when they will collect their Social
Security benefits are doing so for the employment income. Three percent are collecting later
in order to pay bills and for living expenses.
• Those who are going to collect earlier are doing
so for health reasons. Most respondents who
are planning to collect earlier indicated they are
doing so because they are disabled (28%) or for
health reasons (18%). Eight percent reported
that they are collecting earlier than planned as a
personal preference because they can, or want to.
• Although a great majority (82%) of the Oldest
Boomers like the word “retirement” to describe
their next life stage, those who did not like the
word “retirement” last year have not been mollified by moving closer to it. Of the 18% who
did not like the word “retirement” to describe
their next life transition in 2007, 84% still do
not like the word while 8% now like it somewhat. Only 7% like it more now than last year.
Housing
The majority of the Oldest Boomers surveyed
(85%) are homeowners. They value their current
home at $269,300 on average. As would be expected in light of the economic circumstances in
2008 compared to 2007, their reported housing
value has declined from the 2007 average value
of $297,900.
A vast majority (97%) of the re-contacted respondents from 2007 have remained in their
homes since last year. Only a small fraction (3%)
moved or sold their homes in the past year. Onequarter (23%) of respondents surveyed have moved
in the last year or are planning to move sometime
in the future. One-third (33%) of them have downsized or are downsizing to a smaller home. A small
percentage (9%) moved or are planning to move to
an active adult community.
Finances
Overall, the Oldest Boomers surveyed own an average of six financial products, and earn an average
household income (many are dual-income households) of $71,300 annually. The three most common
financial products owned are life insurance (81%),
health insurance (76%), and CDs/savings accounts
(76%). One-quarter of the respondents (25%) own
long-term care insurance, and more than one-third
(37%) own an annuity (see Figure 5).
The Oldest Boomers report an average household net worth of $236,700 in 2008 compared to
$257,800 in 2007, an 8% decrease in reported net
worth during the past year.
Only one in five (19%) of all Oldest Boomers has
already received an inheritance from their parents. Of the 32% who have not already received
an inheritance and have at least one parent still
living, a quarter (27%) still expect to receive one.
The average inheritance expected is $185,800. A
quarter (26%) of those expecting an inheritance
are expecting less than $50,000.
A new finding is that many of the respondents
have helped out their families financially. Nearly
six in ten (57%) say they have provided financial
assistance to their children or grandchildren in the
last five years, averaging $59,000 over that period.
The median amount (i.e., 50% provided more, and
50% provided less) was $30,600. More than three-
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Figure 5: Financial Products Owned*
81%
Life insurance
Health insurance
CD/savings account
401(k)/403(b)/retirement plan
IRA
Defined benefit pension plan
Stocks
Mutual funds
Disability insurance
Annuity
Bonds
Long-term care insurance
SEP or money purchase plan
76%
76%
54%
51%
49%
40%
38%
37%
37%
27%
25%
3%
Mean: 6 products
*Asked of both re-contacted and new respondents.
quarters (80%) indicated, however, that they have
provided less than $50,000 in financial assistance.
calculated needed monthly income in comparison
to females (53%).
In terms of planning for retirement, almost six in
ten (58%) respondents have tried to calculate the
monthly income they will need to live comfortably
in retirement. Specifically, more males (63%) have
While some respondents have delayed when they
will retire, only 38% are on track or have reached
their retirement savings goals, and 44% are behind
(see Figure 6). In fact, 15% are significantly behind
Figure 6: Perceptions of Progress Toward Retirement Savings Goals*
Oldest Boomers
Do not have goals
15%
Have not started
2%
Significantly behind
15%
Somewhat behind
29%
On track for reaching goals
25%
Already achieved goals
13%
*Asked of both re-contacted and new respondents.
29% Fully retired
6% Working full-time
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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The Oldest Boomers: Today & What’s Changed Since 2007
and 2% have not yet started. Of those who have
already achieved their goals, 29% are fully retired,
while only 6% are working full-time.
Finally, 6% of respondents in the 2007 survey
planned on purchasing long-term care insurance, while only 2% of those re-contacted
actually did (see Figure 7).
In terms of planning for retirement, over one-third
(36%) of the Oldest Boomers sought advice from a
professional financial advisor within the past year.
• Not surprisingly, since few respondents lost a
parent in the last year, very few (2%) received
an inheritance within the last twelve months.
Those who did, received an average inheritance
of $113,000.
• What’s Changed
• In 2007, more respondents stated they would
purchase life insurance, long-term care insurance, or a CD/savings account than actually did in 2008. While 11% of respondents
in the 2007 survey planned on purchasing
life insurance in 2008, only 1% of respondents re-contacted actually did. About 7%
of respondents in the 2007 survey planned
on purchasing a CD/savings account, but
only 1% of those re-contacted actually did.
• Only a handful of respondents actually took a
reverse mortgage in 2008 when they became
eligible. Of the homeowners who were recontacted from the 2007 study, only 1% took a
reverse mortgage when initially eligible. Furthermore, of the homeowners who did not take
a reverse mortgage during their first year of
eligibility, 18% would consider using a reverse
mortgage in the future.
Figure 7: Financial Products Purchased in Past 12 Months*
Oldest Boomers
Stocks
4%
3%
Bonds
3%
2%
Disability
insurance
2%
2%
Mutual funds
2%
4%
Long-term
care insurance
2%
6%
Annuity
2%
2%
1%
11%
Life insurance
1%
7%
CD/savings
account
2007—Planned
2008—Actual
*Asked of re-contacted respondents only.
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The Youngest Boomers:
Today & How They Compare to the Oldest Boomers
Relationships
The Youngest and Oldest Boomers are similar
in terms of the number of children they have,
but they are clearly at different life stages. The
Youngest Boomers have young children living
at home while the Oldest Boomers have adult
children and grandchildren, and are typically
empty nesters. The majority (81%) of the Oldest
Boomers do not have any children living with
them, compared to 12% of the Youngest Boomers. Further, the majority (77%) of the Oldest
Boomers have grandchildren while only 14% of
the Youngest Boomers do.
Another difference between them is that the
Youngest Boomers are more likely to have
both parents still living compared to the Oldest Boomers (see Figure 8). A little more than
half (55%) of the Youngest Boomers have both
parents still alive compared to only 4% of the
Oldest Boomers. A larger portion (67%) of the
Oldest Boomers compared to the Youngest
Boomers (11%) do not have either parent
still alive.
Even though fewer of the Oldest Boomers have
living parents, a similar number of the Youngest
Boomers (17%) and Oldest Boomers (14%) are
providing care to a parent or older relative.
The Youngest Boomers spend on average 9.1 hours
per week providing care while the Oldest Boomers spend on average 11 hours per week. Almost
one-quarter (23%) of the Oldest Boomers who
are providing regular care are spending more than
20 hours a week, while only 12% of the Youngest
Boomers are spending more than 20 hours a week
providing regular care.
Figure 8: Parents*
Youngest Boomers
Oldest Boomers
11%
35%
67%
55%
29%
4%
Both still alive
Only one is still alive
Neither are still alive
*Asked of re-contacted and new 2008 respondents.
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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The Youngest Boomers: Today & How They Compare to the Oldest Boomers
Figure 9: Self-Evaluation
“Excellent/Very Good Job” (5 and 4 on a 5-point scale)
Providing for your spouse’s/partner’s/children’s needs†
51%
50%
Maintaining your health for your future well-being
39%
40%
Providing for your personal needs
34%
41%
Contributing to your community
32%
33%
Ensuring you have a steady stream of income
in retirement
23%
35%
Providing for your parent’s needs†
23%
29%
Saving and investing for your future
21%
31%
Planning on how to live your early retirement
years to the fullest
21%
31%
Saving and investing for your children’s future†
21%
25%
Ensuring that you have coverage for long-term
care costs
14%
19%
Youngest Boomers
Oldest Boomers*
*Responses are from the 2007 survey of Oldest Boomers.
†
Responses from those with spouses/partners/parents/children.
When asked to rate how well they have done in
providing for their families and themselves,
respondents in both groups were most likely to
report doing an excellent or very good job (see
Figure 9). On the other hand, respondents in both
groups were least likely to report doing an excellent or very good job of ensuring that they have
coverage for their own long-term care costs.
Health
Overall, 65% of the Youngest Boomers rated
their health as excellent to very good, compared
to just under half (49%) of the Oldest Boomers.
Only 7% of the Youngest Boomers had any major health problems in the past year, while this
number doubled for the Oldest Boomers (14%).
Personal health is a key issue as respondents
among both groups say it is the most influential
factor in terms of affecting their life expectancy
(see Figure 10). Thirty-seven percent of both
Youngest and Oldest Boomers indicated that
their personal health most influences how long
they think they will live.
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Figure 10: What Most Influences Thinking How Long They Will Live*
Personal health
37%
37%
Age of death of parents or grandparents
23%
25%
Personal attitude or perspective on life
16%
17%
Religious beliefs
10%
11%
Life expectancy for someone your age
6%
7%
Number of living parents or grandparents
6%
2%
Age of death of friends
1%
1%
Youngest Boomers
Oldest Boomers
*Responses are from the 2007 survey of Oldest Boomers.
While the number of living parents or
grandparents is more of an influence for the
Youngest Boomers than the Oldest Boomers
(6% versus 2%), both groups are relatively
equal in what influences how long they think
they will live.
Employment/Retirement
Overall, the Oldest Boomers plan to retire at an
older age than do the Youngest Boomers. Contrary to the belief that Boomers want to work
later than the traditional retirement age of 65,
the Youngest Boomers believe they will be able
to fully retire at age 65, although later than 64,
the age at which they plan to retire. The Oldest
Boomers plan to retire at age 66.
In the 2007 survey, 31% of the Oldest Boomers
planned on taking their Social Security
benefits at age 62, while only 18% of the
Youngest Boomers plan to at this age. More
of the Youngest Boomers (69% versus 49%
of the Oldest Boomers) plan to take Social
Security when they are 64 or older. The Oldest
Boomers appear to be more informed about
when they can collect full Social Security benefits. For younger boomers born after 1953,
the age at which they can collect full Social
Security retirement benefits is age 67.
The two groups differ on their concerns about
retirement as well: Outliving retirement
money (18%) and having to work full- or parttime (17%) are the biggest concerns among
Youngest Boomers, while the Oldest Boomers’
biggest concerns are being able to afford health
care (18%) and staying productive and useful
in their retirement years (18%).
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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The Youngest Boomers: Today & How They Compare to the Oldest Boomers
It is clear that the two groups are in different life
stages. One-quarter (24%) of the Oldest Boomers, despite being in or close to retirement, have
no major concern regarding it, compared to
8% of the Youngest Boomers (see Figure 11).
Almost half (49%) of the Oldest Boomers have
a defined benefit pension plan, which may be a
reason for their relatively lower level of concern
about retirement.
When taking annual household income into
account, some additional differences emerge
between the Youngest Boomers and Oldest
Boomers. Interestingly, for the Youngest Boomers, outliving retirement money was most often
selected among respondents who earn $100K
to just under $200K a year (24%), while having
to work in retirement was most often selected
among respondents who earn $50K to just
under $100K a year (20%) and those who
earn $25K to just under $50K a year (23%).
On the other hand, the Oldest Boomers most
often reported no concern, regardless of income level. For those who did report a concern, staying productive and useful was most
often selected among respondents who earn
$100K to just under $200K a year (20%) and
among respondents who earn $50K to just
under $100K a year (19%). Being able to afford
health care was most often selected among
respondents who earn $25K to just under $50K
a year (25%).
Generational Identity
Nearly half of the Youngest Boomers (48%) do
not like the term “Baby Boomer” to describe
themselves at their age, compared to only 17%
of the Oldest Boomers (see Figure 12). The
Youngest Boomers also overwhelmingly (89%)
reject the description of “Generation Jones” or
“Joneser” to characterize their perception of a
generational identifier.
Figure 11: Biggest Concern Regarding Retirement*
Outliving retirement money
18%
12%
Having to work full-time or part-time to
live comfortably in retirement years
17%
10%
Being able to afford health care in your
retirement years
15%
18%
Providing for your own/spouse’s/partner’s
long-term care needs
15%
13%
Staying productive and useful
14%
18%
Having a comprehensive financial plan
for retirement
12%
4%
No concern
8%
24%
Youngest Boomers
Oldest Boomers
*Asked of both re-contacted and new respondents.
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Figure 12: Perception of the Term “Baby Boomer”
Youngest Boomers
Oldest Boomers*
5%
17%
48%
38%
26%
45%
20%
Yes, I like it
I like it somewhat
I don’t like it
Don’t know
*Responses are from the 2007 survey of Oldest Boomers.
Over one-third (35%) of the Youngest Boomers prefer “Generation X” (those age 32 to 43
in 2008) to describe themselves, a term associated with the generational cohort immediately
following the Boomers. While the Oldest and
Youngest Boomers are demographically in the
same generation, a significant percentage of the
youngest clearly consider themselves apart from
the other end of the generational spectrum.
When asked of their opinion regarding the word
“retirement” to describe their next life transition, a large majority of both the Oldest Boomers (82%) and the Youngest Boomers (78%) like
or somewhat like the word. About one in five of
both the Oldest Boomers (18%) and the Youngest Boomers (20%) do not like the word.
Advantages and Disadvantages of
Getting Older
Consistent with popular observation, it appears
that the older you are the older you have to be
to be considered “old.” On average the Youngest
Boomers say they would have to be 71 years old
to be considered old, while the Oldest Boomers
said they would have to be 78 years old.
The top mentions for the best thing about being 45 were “wisdom” and “still being alive.”
Similarly, the Oldest Boomers’ top mentions
for the best thing about being 62 were “still being alive” and “retirement/not having to work.”
The top mention for the worst thing about being both 45 and 62 was “old age/getting older”
(see Figure 13).
It appears the older you are the older
you have to be to be considered “old.”
Housing
Nearly nine in ten of the Youngest Boomers
(88%) and Oldest Boomers (85%) are homeowners. Younger homeowners placed a greater
value on their current home in comparison to
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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The Youngest Boomers: Today & How They Compare to the Oldest Boomers
Figure 13: Worst Thing About Being 45 and 62*
45
62
Top Mentions (3% and over)
Top Mentions (3% and over)
Old age/getting older
16%
Aches/pains/stiffness
Appearance/physical
changes
7%
Middle age/mid-life crisis
Health problems
Wrinkles
Not being <age> anymore
Being closer to <age>
4%
3%
Old age/getting older
19%
Health problems
8%
6%
4%
3%
Aches/pains/stiffness
Aging
Death/closer to dying
Not being able to do
things I used to do
3%
Other people’s perceptions
3%
3%
Physical limitations
3%
Loneliness/feeling left
out/ignored
3%
5%
*Responses are from the 2007 survey of Oldest Boomers.
the Oldest Boomers. The Youngest Boomers
value their homes at approximately $304,400.
The Oldest Boomers value their homes at approximately $269,300.
Large majorities of both the Youngest Boomers (70%) and Oldest Boomers (75%) plan to
remain in their current homes. Less than one
in five of both the Youngest Boomers (17%)
and the Oldest Boomers (17%) plan on moving
within the next five years.
Finances
Life insurance, health insurance, and highly liquid assets such as certificates of deposit and savings accounts are the bedrock financial products
owned by both the Youngest and Oldest Boomers, complemented by 401(k)/403(b) for a much
higher percentage of the Youngest Boomers (see
Figure 14). Both groups own a similar number
of financial products, but ownership on some
specific products differs. Reflecting longstanding
trends in employee benefits and pension cover-
4%
3%
age, more of the Youngest Boomers than the
Oldest Boomers own a 401(k) plan (71% versus
54%) and disability insurance (57% versus 37%),
while more of the Oldest Boomers have a traditional defined benefit pension (49% versus 37%),
or an annuity (37% versus 17%).
Understandably, since more of the Oldest
Boomers are out of the workforce, fewer would
have a 401(k) plan, and with the transition from
defined benefit pensions to defined contribution plans, it would explain why more Oldest
Boomers still have this type of plan. Interestingly, as many Youngest Boomers (27%) say they
own long-term care insurance as Oldest Boomers (25%), it is unlikely that this is the case.
While only 19% of the Oldest Boomers indicated
they would consider using a reverse mortgage
during their retirement (or have already during
their first year of eligibility), just about a quarter
(24%) of the Youngest Boomers would consider
using one.
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Figure 14: Financial Product Ownership*
Life insurance
88%
81%
Health insurance†
82%
76%
CD/savings account
77%
76%
401(k)/403(b)/retirement plan
71%
54%
Disability insurance
57%
37%
IRA
45%
51%
40%
Stocks
40%
Defined benefit pension plan†
37%
49%
Mutual funds
34%
38%
Long-term care insurance
27%
25%
Bonds
24%
27%
Annuity
17%
37%
1%
3%
SEP or money purchase plan
Youngest Boomers
Oldest Boomers
*Asked of both re-contacted and new respondents.
†
From current or former employer.
On average, the Youngest Boomers surveyed
earn $89,100 in household income annually
compared to the Oldest Boomers who earn
$71,300 annually, which is understandable
in view of the larger proportion of the Oldest
Boomers who are retired or on disability in-
come, and the lower percentage who are employed full-time. The Oldest Boomers estimate
their household net worth excluding home value
to be, on average, $236,700 compared to the
Youngest Boomers who estimate their household net worth to be, on average, $206,600.
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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The Youngest Boomers: Today & How They Compare to the Oldest Boomers
One in five (19%) of the Oldest Boomers has
already received an inheritance, while only 10%
of the Youngest Boomers have received one.
Since more of the Oldest Boomers have lost one
or both parents, it is understandable why more
would have received an inheritance.
However, for those who haven’t already received
an inheritance and have at least one parent alive,
an equal percentage of Youngest Boomers and
Oldest Boomers still expect to receive one (see
Figure 15). Of the 32% of Oldest Boomers who
have not received an inheritance already and
have at least one parent still alive, 27% still expect to receive one, on average $185,800. On the
other hand, of the 84% of the Youngest Boomers
who have not received an inheritance already
and have at least one parent still alive, 28% still
expect to receive one, on average $207,800.
Almost six in ten (57%) of the Oldest Boomers
say they provided financial assistance to their
children or grandchildren in the last five years,
averaging $59,000 in assistance in that period.
Only 18% of Youngest Boomers say they have
received financial assistance from their parents,
averaging $61,100. However, both the Youngest Boomers (78%) and Oldest Boomers (80%)
reported that the amount of the assistance provided or received was less than $50,000.
Figure 15: Inheritance from Parents
Do you expect to receive an
inheritance from your parents?*
Youngest Boomers
4%
Oldest Boomers
1%
68%
72%
28%
Yes
27%
No
Don’t know
Approximately, what do you
expect the value of the inheritance
to be before taxes?†
Less than
$50,000
18%
26%
$50,000$99,999
19%
16%
$100,000$249,999
17%
9%
$250,000$499,99
10%
14%
$500,000 or
more
13%
8%
Don’t know/
refused
23%
28%
Youngest Boomers
Oldest Boomers
Mean: $207.8
Mean: $185.8
*Asked of those who have not already received an inheritance and have a least one parent still living.
†
Asked of those who indicated that they expect to receive an inheritance from parents.
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Both the Youngest Boomers (74%) and Oldest
Boomers (65%) reported that they would prefer
a financial arrangement that guarantees a source
of lifetime income but may limit spending in
early retirement, as opposed to spending more
in early retirement that may limit spending in
later retirement. Interestingly, a small percentage of respondents in either group currently own
an annuity product, which would provide this
type of financial payout, although almost four in
four (37%) of the Oldest Boomers report owning
ten, a much higher percentage than the Youngest Boomers (17%). It may be that the Youngest
Boomers, with much more child-rearing responsibility and accompanying financial impact do
not yet have the resources to provide this type of
guaranteed income security for themselves.
There is an even split between those who seek
advice from a professional financial advisor versus those who did not among the Youngest and
Oldest Boomers. Only 45% of both the Youngest Boomers and Oldest Boomers have sought
advice from a financial advisor. Surprisingly,
the top mention among the Youngest Boomers
for not seeking professional advice is not being
able to afford one. While some financial advisors
charge a fee, many are paid only through commission on sales, indicating that many Boomers
may not be taking advantage of all the types of
professional financial advice available to them.
Not surprisingly, compared to the Youngest
Boomers, more of the Oldest Boomers (13%
versus 2% of Youngest Boomers) have already
achieved their retirement savings goals. However, in both groups the majority are behind
in their savings goals or have not set goals (see
Figure 16).
When asked to indicate what percentage of retirement income will come from Social Security,
Figure 16: Perceptions of Progress Toward Retirement Savings Goals
Already achieved goals
2%
13%
On track for reaching goals
34%
25%
Somewhat behind
35%
29%
Significantly behind
18%
15%
4%
2%
Have not started
7%
15%
Do not have goals
Youngest Boomers
Oldest Boomers
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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The Youngest Boomers: Today & How They Compare to the Oldest Boomers
Figure 17: Projected Sources of Retirement Income
Youngest Boomers
Savings &
Investments
401(k)/
Pension
27%
33%
Social Security
41%
401(k)/pension plans, and savings and investments, the Youngest Boomers said that the
majority of their retirement income will come
from their 401(k)/pension plans (41%), followed
by Social Security (33%), and then their savings/
investments (27%). See Figure 17.
Respondents with lower income projected a
greater percentage of retirement income to come
from Social Security than respondents with
higher income. Nearly a quarter (22%) of the
Youngest Boomers who earn $100K to just under $200K a year anticipate over 40% of their retirement income will come from Social Security
compared to 29% of respondents who earn $50K
to just under $100K a year and 47% who earn
$25K to just under $50K. In fact, 12% of those
earning $25K to just under $50K anticipate that
81%–100% of their retirement income will come
from Social Security.
Almost six in ten (58%) of those earning
$100K to just under $200K a year anticipate
that over 40% of their retirement income will
come from 401(k) or pension compared to
those who earn $50K to just under $100K a
year (46%) and those who earn $25K to just
under $50K a year (46%). One in five (21%)
respondents who earn $25K to just under
$50K a year project none of their income will
come from 401(k) or pension.
There is more agreement regarding projected
income from savings and investments among
these three income groups. About one in five
of those earning $25K to just under $50K
(17%), those earning $50K to just under
$100K (23%), and those earning $100K to just
under $200K (22%) project over 40% of their
retirement income will come from savings
and investments.
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Summary and Implications
There have been and continue to be tremendous
resources expended to understand the Baby
Boomers because of the sheer size of this cohort
and their historical and ongoing impact on the
culture, economics, and social challenges over
the last half century. The results of this study
confirm the complexity of trying to characterize
a large and diverse group based simply on basic
demographic attributes.
Demographically, those born in 1946 and 1964
are both identified as Baby Boomers by virtue
of their birth cohort. Yet, the Youngest Boomers
clearly have much less of a cohort identity with
the Oldest Boomers than with the Generation X
cohort following them. Despite this, almost
equal percentages describe the worst thing about
their respective ages—despite an 18-year difference—as “old age” or “getting older.” In general,
they are very similar on most demographic
variables such as education, and comparable in
annual income given their respective employment circumstances.
Caregiving for an older relative is also an area
where equivalent portions of these age groups
share common ground, with 17% of the Youngest and 14% of the Oldest Boomers respectively
providing such care. The Youngest Boomers are
more heavily focused on their children, with
a large majority still having children at home,
while the Oldest Boomers are more likely to
have grandchildren and much less likely to have
a living parent. There are also commonalities in
their perceptions regarding the reasons for their
anticipated life expectancy, primarily their
own health status and the life expectancy of
their parents.
Both the Youngest and Oldest Boomers are
looking to take advantage of different financial
resources in the future, yet both groups also may
be underestimating the importance of Social
Security retirement benefits in their retirement
income mix. Historically, the majority of retired
Americans rely on Social Security benefits for
close to two-thirds or more of their retirement
income, supplemented by pension benefits,
401(k), and personal savings and investment
income. Yet, these groups generally expect Social
Security to provide only about one-third of their
retirement income. Those with the lowest annual income—under $50K—are more accurately
expecting Social Security benefits to account for
80%–100% of their retirement income. Despite
popular perception that Boomers are generally
skeptical about the future viability of Social Security as a foundation of their retirement income,
a large majority of both are clearly anticipating
these benefits to account for significant portions
of their future retirement income security.
More of the Oldest Boomers have also invested
in additional discretionary forms of guaranteed
income through annuities, but equal percentages
of both groups invest in long-term care insurance
as another income security hedge. These may be
among the reasons that more of the Oldest Boomers feel that they have done a good job of ensuring
a steady stream of income for their retirement,
and saving and investing for their future thus far
in comparison to the Youngest Boomers.
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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Summary and Implications
In view of the economic downturn beginning in
2008 and its significant negative impact on the
value of equity-based retirement income such
as 401(k) defined contribution plans, the value
of guaranteed income benefit programs, and
products such as defined benefit pensions, Social
Security, and annuities should well elicit more
attention and consideration. Both the Youngest
and Oldest Boomers clearly share the bedrock
of their financial security through financial
products and benefits such as life insurance,
employer-provided health benefits, personal
savings, 401(k), IRAs, and disability insurance.
Even so, only 38% of the Oldest Boomers feel
they have achieved or are on track to achieve
their retirement savings goals, and an equivalent
36% of the Youngest Boomers feel the same way.
An interesting divergence occurs here between
the Youngest and Oldest Boomers. The Young-
est Boomers concur with almost equal percentages that they are concerned about all the major
issues about retirement such as outliving their
resources, having to work longer to live comfortably, and affording health care. While also sharing these concerns, the largest percentage of the
Oldest Boomers (24%) reveal that they have no
major concerns about retirement.
Health issues clearly emerge as a differentiator
between the Oldest and Youngest Boomers.
Even though there was relative stability in selfreported health status among the Oldest Boomers re-contacted in 2008, health changes have an
impact on Oldest Boomers’ employment, with
almost one in five already out of the workforce
due to disability, and a lower percentage who
report excellent to good health in comparison
to the Youngest Boomers.
24
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Methodology
The Boomer Bookends study was conducted
by GfK Custom Research North America on
behalf of the MetLife Mature Market Institute
(MMI) during October 2008, as a follow-up to
Boomers: Ready to Launch, released in 2007.
The 2007 study consisted of a telephone survey
of 1,000 participants aged 61 in 2007, who were
asked to be re-contacted for the follow-up survey. For those re-contacted, responses from a
select number of questions from the 2007
survey were compared with their responses
in the 2008 survey.
A total of 1,072 respondents born in 1946 (the
Oldest Boomers) were surveyed by telephone
for the 2008 study, which included 562 of the
910 respondents from the 2007 study who
agreed to be re-contacted. The re-contacted
group was supplemented with an additional 510
new respondents provided by Dunhill. A total of
1,000 respondents born in 1964 (the Youngest
Boomers) were also surveyed by telephone.
Data were weighted by demographics to reflect
the total population. The margin of error for the
survey was +/- 3 percentage points.
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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Appendix
Figure 18: Demographics†
Youngest
Boomers
Oldest
Boomers
Marital Status
Married
76%
Single, never married
17%
Domestic partnership
0%
Divorced 5%
Separated
Widowed 67%
9%
0%
16%
1%
0%
1% 7%
Ethnic Background
White/Caucasian
79%
Black/African-American 13%
9%
8% 7%
Yes 10% 7%
No
90%
Asian/Other
84%
Hispanic Origin
93%
Gender
Male
49%
47%
Female
51%
53%
80%
53%
Employment Status
Employed (net)
Employed full-time
69%
50%
Employed part-time
11%
3%
7%
2%
6%
4%
Stay at home Mom/Dad
Self-employed
On Disability
4%
Looking for work
2%
Fully retired
0%
11%
2%
19%
Education
Did not complete high school
2% 4%
High school or GED
39% 38%
Associate’s degree
19% 20%
Bachelor’s degree
26% 25%
Master’s or doctorate degree
13% 13%
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Youngest
Boomers
Oldest
Boomers
Household Net Worth (excluding home value)
Less than $50,000
20% 19%
$50,000-$99,999
17% 13%
$100,000-$249,999
25%
$250,000-$499,999
19%
15%
$500,000 or more
9%
16%
Don’t know
5%
10%
Refused
5%
Youngest
Boomers
20%
8%
Oldest
Boomers
Income
Less than $25,000
5%
14%
$25,000-$49,999
16%
23%
$50,000-$99,999
49%
45%
$100,000-$199,999
25%
15%
$200,000 or more
5%
4%
Youngest
Boomers
Oldest
Boomers
Estimated Population—2008*
4,575,312
2,690,506
Numbers may not add to 100% due to rounding.
*As of July 1, 2008. Source: U.S. Census Bureau, National Population Estimates, 2008.
†
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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Notes
28
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Notes
Bo o m er Bo o k e n d s : I n s i g h t s I n t o t h e O ld e s t a n d Y o u n g e s t B o o me r s
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Notes
30
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31
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Variable and Long-Term Care Products are: • Not A Deposit Or Other
Obligation Of Bank • Not FDIC-Insured • Not Insured By Any Federal
Government Agency
Only Variable Annuity Products: • Not Guaranteed By Any Bank Or Credit Union
• May Go Down In Value
Only Long-Term Care Products: • Not Issued, Guaranteed Or Underwritten By
Bank Or FDIC • Not A Condition To The Provision Or Term Of Any Banking
Service Or Activity • Policy Is An Obligation Of The Issuing Insurance Company
02361_MetLife.indd 2
© 2011 Metropolitan Life
Insurance Company
200 Park Avenue
New York, NY
MMI00105(0209)
L1111220310(exp1014)
2/23/09 2:36:25 PM