The last wave of baby boomers, born between 1959 and 1964, approach the age of 65.  As a result, a significant shift is set to occur in the U.S. economy. Dubbed “peak 65”  This demographic cohort is poised to retire en masse between 2024 and 2030, with implications reaching far beyond just individual households.

The Impact on the Economy

Currently, peak boomers make up approximately 10% of the U.S. workforce. Their departure from the workforce within the next decade will create a ripple effect across various sectors of the economy. Because of this, millions of job vacancies will be left in their wake.  Businesses will face challenges in finding skilled replacements, leading to slower productivity gains.

Moreover, the strain on entitlement programs like Social Security will be palpable. According to the Alliance for Lifetime Income, more than half of the estimated 30.4 million peak boomers will primarily rely on Social Security for income during retirement. This reliance underscores the importance of addressing the long-term solvency of such programs to ensure financial stability for retirees.

Gender Disparities in Retirement Savings

While there could be several reasons for boomers’ financial condition, the statistics aren’t painting a pretty picture: The median retirement savings of baby boomers is $202,000. Forty-three percent of 55- to 64-year-olds had no retirement savings at all in 2022, according to the Federal Reserve Board

Compounding the issue is the significant gap in retirement savings between genders.  Women, on average, have 30% less saved for retirement compared to men. This discrepancy can be attributed to various factors, including wage disparities, career interruptions for caregiving responsibilities, and longer life expectancies, which necessitate more substantial retirement funds.

Economic Consequences

The mass exodus of peak boomers from the workforce will have broader economic implications. A projected 10% of workers exiting the workforce will likely lead to a decline in U.S. GDP and consumer spending. Consequently, this decrease in economic activity could result in double-digit turnover rates in key sectors, increasing operational costs for businesses.

Preparing for the Transition

Given the magnitude of the impending demographic shift, proactive measures are essential to mitigate its adverse effects. Policymakers must address the sustainability of entitlement programs and implement reforms to ensure their viability for future generations of retirees. Additionally, efforts to close the gender gap in retirement savings and promote financial literacy among all demographics are crucial steps toward fostering retirement security.


The retirement of peak boomers represents a significant milestone with far-reaching implications for the U.S. economy. As this demographic cohort exits the workforce in the coming years, businesses, policymakers, and individuals alike must prepare for the challenges and opportunities that lie ahead. By addressing issues such as retirement savings disparities, reliance on entitlement programs, and workforce succession planning, we can navigate this transition towards a more financially secure future for all.

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