What will the effect of the boomer retirement have on the stock market?
Posted by Answers CommunityRight now, boomers are preparing for retirement. Most are earning in their peak years or near their peak income levels. They are pumping more money than ever into the market to pay for their retirements.
The ratio of people pulling money out of the market to fund their retirements in comparison with the people putting money into the market to save for their future retirements is better than it will be for at least the next three generations, most likely more.
In the next five to fifteen years, the ratio of people paying into the market to save for their retirements in comparison to the people taking out of the market to pay for their retirements is going to change drastically. The draw on the market will increases drastically over the savings rate to finance retirement. This will be a historical first for the stock market.
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The stock market is a reflection of our economy. The stock market will forever go up and down but as it alway has it will continue to go up more times than it will go down. There have always been and will always be historic firsts.