Don't Blame The Baby Boomers

It is widely reported that the changing global demographics will raise many challenges. The focus of the reporting though is that the Baby Boomers are retiring and cashing in their savings to fund their retirement. What's more, they have the cheek to expect a pension once they reach retirement age. It seems we Baby Boomers are relying on the workers of today to fund our extravagant lifestyles in retirement. The gall. 

The truth of the demographic tilt though is that the newer generations are actually causing the problem. Generation X and Y have a different focus and different challenges than the Post War and Baby Boomer generations. It is this change of priority and shift of focus that is actually creating the skewed demographics.

Generations X and Y are:

Entering the workforce later. 

Degrees and higher education are considered key in securing employment and so Gen X and Y are studying more. Many also take a Gap Year between studies and employment resulting in most entering the workforce at a later age than previous generations. 

Relying on credit or Parental Funding

The newer generations rely heavily on credit for their higher education. Most graduate with degrees in one hand  and excessive debt in the other. They rely of their parents (Baby Boomers) for food, shelter and money for much longer than previous generations. Staying with their parents until 30 years old is commonplace these days. There is also a necessity to have the latest technology. Smart phones, tablets and lap tops are examples of must have technology for Gen X and Y and credit or telco plans are the easiest way of ensuring they have them. 

Not having any/many children. 

With higher debt, unaffordable housing and a bigger focus on holidays and retail therapy, many from these generations do not have children and those that do are having them much later in life. Living expenses, child care costs and a focus of Self rather than Family are all factors. With the introduction of paid maternity leave, many are waiting until they reach the service period level with their employers before starting a family. 

In 2007 nearly 30% of women had their first child at the age of 30 to 35 compared to 20% in 1980. 

According to the 2011 census, the average number of children per family is 1.9 compared to 3.5 in 1961. 

Expecting more for less. 

The X and Y generations do not seem to have the same work ethic as Baby Boomers. They are less likely to work longer hours unless paid appropriately. They have higher expectations for remuneration/benefits and status/respect. They are less accountable and are more prone to look for easy short cuts. They do not necessarily show respect for the knowledge and experience of people older than them. 

Shifting home ownership to a lower priority. 

Many Generation X and Y are choosing to either rent or stay with their parents for much longer than previous generations. Owning their own home is not as important as it once was. 

Viewing Immigration as non essential. 

Even though the X and Y generations are contributing less to the population, immigration is not viewed in a positive light. Media and government focus on refugees and "boat people" casts much of immigration in a negative way. With the decline of career opportunities it is also likely that many immigrants will choose countries other than Australia for their new home. 

But one factor is helping correct the demographic tilt in Australia. Pension reductions, superannuation restrictions, rising costs and a dim economic outlook have given rise to a new flood of Baby Boomers from Australia to affordable countries such as Panama, Thailand and the Philippines. Other countries are now considering introducing Retirement Visas to cash in on this growing opportunity. 

So when you next read an article that hints that Baby Boomers are the cause of all the demographic issues and rising costs and that they are a burden, expecting Generation X and Y to fund their retirements, spare a thought for what Gen X and Gen Y should do......