AND HOW WILL THIS AFFECT GENERATION X?
Baby Boomers are making headlines today, but unfortunately it is not because they are picketing to stop a war or change laws this time. Sadly, this news is about the fact that our parents and grandparents are struggling to take care of themselves financially. After years of hard work, dedication and dreams of a relaxing retirement, numerous Baby Boomers have lost their jobs, retirement funds, equity in their homes and/or are finding out not only are they unable to retire, but they cannot find work either.
At least the Boomers still can collect Social Security when they reach age 62, right? Wrong! This group has contributed more than any other generation to the Social Security Trust Fund. Unfortunately, our government has recklessly used the funds for other initiatives throughout the years and is now panicking about how there is not enough Social Security available to compensate the large group of Boomers as they approach retirement age.
Various Boomers have been out work for more than a year and have already exhausted their unemployment compensation. While searching for work, a majority of the “over 50” job seekers claim they are repeatedly rejected for being over qualified or under qualified. Others testify to receiving very little response to their resume or application submissions at all.
In regards to those Baby Boomers who have found work, a large portion have had to swallow their pride, lower their standards and accept entry level or service oriented jobs. Not only are these jobs demeaning to those who have more than 30 years of professional experience, the compensation is equivalent to peanuts.
Nonetheless, you can find more and more Baby Boomers on the other side of the counter at fast food restaurants, drug stores, grocery stores or other low paying service jobs which require more physical work than a lot of these mature individuals can realistically handle. Furthermore, this is where most of them began their work experience. However, this time around, it’s not about making “spending money”. These Boomers have serious financial obligations, such as mortgages, rent, utilities, groceries, medical bills, etc.
Could ObamaCare be a culprit in the vast amount of employers’ reluctance to hire older workers? Why not? Numerous American doctors have sold practices within the last few years in an effort to avoid dealing with the haunting health program proposal. Employers have already been changing their business methods to accommodate the costly changes in employer tax and insurance requirements. It does not take a scientist to assume an employer is going to fear a monstrous increase in costs and other liabilities required for hiring someone over age 50.
This is a very serious issue that must not be overlooked. Without the ability to truly rely on social security, retirement funds and/or home equity; the only options remaining for Boomers is to either find better jobs, get a reverse mortgage, or receive financial assistance from friends or relatives.
Statistics are showing that America’s elderly population is living longer, which in turn increases health care costs. Consequently, the cost of caring for a Baby Boomer family member will create more of a financial burden on their descendants than simply providing room and board. And in a current economy where the job market is practically a “hit or miss” for all ages and industries, this problem does not only affect Boomers. It also puts an intense strain on their children.
In the past, health issues were the primary reason children would take over the care for their elderly parents. Without the ability to earn an income; turn to a retirement fund; or rely on social security, these Boomers will be forced to rely on their children much earlier. Yet, the average Generation X household is struggling to put food on their own table. Most of these forty something Americans were not expecting to be financially responsible for their parents or grandparents at such a young age while battling their own personal, professional and financial responsibilities.
Countless suggestions have been mentioned to help Baby Boomers find jobs. The best advice I have heard so far is to start a business. By becoming entrepreneurs, Boomers have more of an ability to make a decent income. Additionally, owning your own business takes away the constant worry of being “let go” and this idea offers an opportunity for Boomers to use their well-developed skills while learning new ones.
Without a job and/or good credit, qualifying for a traditional bank loan may not be an option. That is why Chapes JPL began offering low rate secured loans more than thirty years ago. A valuable asset, such as gold, silver, platinum, fine jewelry, designer watches or even a luxury vehicle, will provide the loan leverage required to get a start-up business loan, student loan, or any other financial need.
If you would like more information about this topic, or would like to schedule a meeting with Jeff Zager or another representative from Chapes-JPL, please contact us by phone at (404) 504-7021, or email at email@example.com.