Understanding Baby Boomers
Let me explain what a baby boomer is: if you were born between 1946 and 1964, you're part of this significant generational group that has left a lasting mark on the economy and society, even as many enter retirement.
“Baby boomer” describes anyone born from 1946 to 1964. This group was the largest in U.S. history until millennials edged them out in 2019. Baby boomers still make up a big chunk of the world's population, particularly in developed countries.
They've shaped the economy in major ways and continue to do so.
Key Takeaways on Baby Boomers
The term “baby boomer” applies to those born right after World War II up to the mid-1960s. You should know that boomers remain influential in economics and politics due to their sheer numbers and the prosperous U.S. economy during their careers. But many are hitting financial hurdles as more reach retirement age.
Facts and Figures About Baby Boomers
The baby boomer generation started after World War II when birth rates surged worldwide. In the U.S., this boom meant 76 million babies were born. The Census Bureau pegged the boomer population at about 73 million in 2019, but it's been dropping—down to nearly 69 million aged 58 to 76 in 2022, based on Population Reference Bureau data.
Historians point to several factors for this boom: people delayed families during the war and Depression, then felt optimistic about peace and prosperity. The late 1940s and 1950s brought rising wages, booming businesses, and more consumer products.
Young families moved to suburbs, helped by the G.I. Bill which let many veterans—though not Black Americans—buy affordable homes. This created the stereotype of the ideal family: husband as breadwinner, wife as homemaker, with kids. Businesses targeted them with ads, and credit use grew for buying cars, appliances, and TVs.
As boomers hit adolescence, many rejected this consumer culture, sparking the 1960s youth counterculture. Now, as the longest-living generation yet, they're leading what's called the longevity economy. In 2020, they spent $8.7 trillion on goods and services, expected to hit $15 trillion by 2030, per a Brookings Institution report.
Importantly, baby boomers held 51.4% of household wealth in early 2025, far ahead of Gen X at 26%, showing their ongoing economic and political clout as they age.
What Retirement Looks Like for Baby Boomers
By 2030, every baby boomer will be 65 or older, and their retirement differs greatly from their parents' in the Greatest Generation.
Longer life expectancies mean boomers will likely spend more years retired. U.S. average life expectancy was 78.4 years in 2023. With better health and job options, many can work longer, boosting income and savings while shortening the drawdown period on those savings.
During their careers, boomers saw traditional defined-benefit pensions fade away—these promised fixed income in retirement, funded and managed by employers. Their parents often retired comfortably on them. Instead, defined-contribution plans like 401(k)s took over, funded mostly by employees with some employer matches, and workers choose investments themselves.
In 1975, 27.2 million private-sector workers had defined-benefit plans; by 2019, that fell to 12.6 million. Defined-contribution participants jumped from 11.2 million to 85.5 million. Median boomer retirement savings were $289,000 in 2023, per the Transamerica Center, with 41% expecting Social Security as their main income source.
Social Security funds come from the OASI trust fund and current worker contributions. Trustees say the fund runs dry in 2033, leaving worker income to cover only 77% of benefits. The issue stems from boomer retirees outnumbering workers: 8.6 workers per retiree in 1955, down to 2.7 in 2023, possibly 2.3 by 2035, per Social Security estimates.
Origins of the Term 'Baby Boom'
The phrase “baby boom” dates to post-World War I in England. It appeared in U.S. papers near the end of World War II and gained traction in a 1951 Sylvia Porter article on its economic effects. “Baby boomer” emerged in the 1970s, popularized by Landon Y. Jones's 1980 book Great Expectations: America & the Baby Boom Generation.
Related Terms: Echo Boomers and Generation Jones
Echo boomers are boomers' kids, born roughly 1976 to 2001 during another birth rate rise. Early ones fit Gen X, later as millennials or Gen Z. Generation Jones refers to U.S. boomers born 1954 to 1965, coined by Jonathan Pontell, who argues they're distinct from earlier boomers.
The Bottom Line
Baby boomers remain a dominant force in the U.S. economy and will likely stay that way for years. As the longest-living generation, their extended retirements raise questions about Social Security's sustainability.
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