Investor’s has a great article on reaching ‘peak boomer’ whereby the bulk of the baby boomer generation is now hitting age 65. From Investors.com:
According to the U.S. Census Bureau’s population projections, about 12,000 people will turn 65 every day in the next year. That’s about 4.4 million in 2024. And by 2030, all boomers — those born from 1946 through 1964 — will be 65 or older. This means one in every five Americans will have reached the traditional retirement age.
Investors.com
We created the above chart back in June but new data is out so here’s the updated chart.
Another major problem with so many people in the United States aging is the pressure placed on nursing care facilities. Yahoo Finance reports:
Costs for nursing homes and adult care jumped by the largest monthly amount in July, according to new inflation data.
The latest report from the Bureau of Labor Statistics released Thursday showed that the costs for nursing homes and adult care increased by 2.4% in July from the previous month, the biggest gain on records dating back to 1997. Overall consumer prices were up 0.2% month over month.
Source: Yahoo Finance
The trend is clearly visible, we have too many retirements depleting the labor force and we have too many people demanding goods and services. We think the net result will be stubbornly high inflation for a prolonged period of time with periodic respites as the Fed does its best to try to contain it but we think we’re heading for a repeat of the late 1970’s and early 80’s. To see how it turns out stay tuned, stay profitable and stay solvent…