🧑🦳 How Our Aging Population Affects Investment And Wealth Strategies
The U.S. population, like those of many developed countries, is aging. According to the latest Census figures, a major shift occurred over the past two decades in which the share of the population under 50 declined, especially among those of prime working age. Even the youngest baby boomers are nearing retirement age, while the oldest are almost 80. And while millennials have come of age and now outnumber boomers, that hasn't been enough to prevent the average age in the U.S. from shifting from 35.4 in 2000 to 38.8 today. What could these trends mean for the economy and markets in the future?
We discuss in this episode of The Wealth Effect Podcast:
📊 U.S. Population Distribution
🧮 U.S. Life Expectancy
⚖️ Balancing Portfolio Risk & Reward
Matt Faubion, CFP®
Founder - Wealth Manager
Show notes and charts:
The U.S. population is aging
Higher life expectancies increase longevity risk
Portfolios should be constructed with longevity risk in mind
The bottom line: Demographic trends are a headwind to economic growth, while longer life expectancies increase longevity risk for individuals. Holding an appropriate portfolio to balance these risks while emphasizing an adequate, and likely increased, savings rate will go a long way for investors to achieve their financial goals.
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