What exactly have the baby boomers left us with? A bunch of debt. As baby boomers reach retirement, they’re able to enjoy pensions, health-care benefits, and old-age benefits while the workforce diminishes at a rapid rate. Since the 1950’s there has been a steady decline in Canada’s birth rate; coupled with the fact that there aren’t enough immigrants arriving, it is estimated that the ratio of working Canadian’s to retirees, will fall. What does this mean for young workers? It means we are in charge of clearing the debt they left behind- meaning we have to pay more taxes, and that there’s less of us to take on the burden. It is estimated that Canada will have a debt of 1.5 trillion dollars over the next 5 decades and that younger workers will have to work longer before retiring. Young workers now are at a disadvantage compared to the young workers 50-60 years ago. Boomers had the “best bang for their buck” in terms of education, and they’re able to sell their long-term assets to fund their retirement. With increased tuition costs, increased national debt, and a whole lot of old people to take care of, the future seems hard for many young workers.
Sources:
http://www.economist.com/node/21563725?spc=scode&spv=xm&ah=9d7f7ab945510a56fa6d37c30b6f1709