Stocks May Be Unscathed by Baby Boomer Retirees
The retirement of the baby-boom generation should not be a drag on stock prices, according to an analysis by Vanguard.
Vanguard researchers cited three key reasons why aging baby boomers won’t adversely affect the stock market. First, the baby-boom generation spans 19 years (birth dates of 1946 through 1964). Second, international ownership of U.S. stocks has been increasing. Third, historical data does not show a significant relationship between age and equity returns.
Though baby boomers are often grouped together, they will enter retirement over a prolonged period. The first baby boomers turned 65 in 2011 and the last won’t turn 65 until 2029. The length of the time-span implies any impact of their retirement on stock prices should occur gradually.
...To continue reading this article you must be registered with AAII.
Already registered with AAII? Login to read the rest of this article.
to read this article and receive access to future AAII.com articles.