Slow and steady for boomer advisers

Financial advisers shouldn’t focus on the big picture of 78 million baby boomers charging toward retirement, but as a gradual evolution, said Oppenheimer Funds economist Brian Levitt.
SEP 11, 2007
By  Bloomberg
Financial advisers shouldn’t focus on the big picture idea of 78 million baby boomers charging toward retirement, but should instead think of the next few decades as a gradual and steady evolution in the financial services industry. This was the gist of what Oppenheimer Funds economist Brian Levitt told advisers yesterday at the Financial Planning Association’s annual conference. “The demographics just don’t point to the boomers all moving as one homogenous group,” he said. “From a financial services standpoint, that idea is overblown.” Mr. Levitt joined other members of New York-based Oppenheimer Funds in looking beyond many of the top-level assumptions with regard to the aging baby boomer population. While much attention has been placed on the migration of baby boomers into retirement, sparking concerns over massive liquidity events and the challenges of managing retirement income strategies, Mr. Levitt pointed out there are about 45 million baby boomers who have not yet even turned 50 years old. “The trailing edge of the boomers is made up of people who are still in their 40s,” he said. “These people still have kids at home, so they’re not going to start selling off their portfolios and moving everything into bonds.” It is a mistake, he said, to think of the baby boomers as a single demographic population. “Boomers overall control 70% of the nation’s wealth, but 10% of boomers control two-thirds of all boomer wealth,” he said. Insufficient retirement assets is just one of the reasons a lot of baby boomers will keep working well into their 60s and 70s, he said. “They are living longer and working longer,” he said, citing an internal survey that suggested 50% of baby boomers expect to retire after the age of 65. This compares to an Oppenheimer Funds survey of current retirees that showed 55% of that group retired before the age of 60.

Latest News

US wholesale inflation surprises on food, energy prices
US wholesale inflation surprises on food, energy prices

The latest PPI print, clocking in north of 3 percent, adds to concerns that inflation is far from tamed.

Robinhood earnings surge as TradePMR acquisition plan rolls along
Robinhood earnings surge as TradePMR acquisition plan rolls along

The DIY investment giant's positive earnings surprise, surpassing $1 billion in revenue for the first time, puts it on strong footing for future expansion.

Advisors expect revenue boost this year as Secure 2.0 provisions kick in
Advisors expect revenue boost this year as Secure 2.0 provisions kick in

Most retirement plan specialists anticipate gain of up to 10%.

Debt has become a way of life for working Americans, report warns
Debt has become a way of life for working Americans, report warns

And they would have to work extra hard to pay it off.

Stock fragility near record levels, stirring memories of dot-com bubble
Stock fragility near record levels, stirring memories of dot-com bubble

BofA strategists highlight rising volatility's risk to largest US stocks.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.