The number of people in the U.S. 65 and older will nearly double by 2050, profoundly effecting the nation’s character and its businesses, including financial advisors, according to two new reports by the U.S. Census Bureau.
The nation’s 65-and-older population is projected to reach 83.7 million in 2050, compared to 43.1 million in 2012, an increase driven mostly by the aging of the baby boomer generation. Baby boomers were born between 1946 and 1964 and began turning 65 in 2011. They are now swelling the ranks of older populations in the United States and other countries.
“The United States is projected to age significantly, with 20 percent of its population age 65 and over by 2030,” says Jennifer Ortman, chief of the Census Bureau’s Population Projections Branch. “Changes in the age structure of the U.S. population will have implications for health care services and providers; national and local policymakers; and businesses seeking to anticipate the influence that this population may have on their services, family structure and the American landscape.”
The Census Bureau released its findings on the projected population changes in two reports: An Aging Nation: The Older Population in the United States and The Baby Boom Cohort in the United States: 2012 to 2060.
“The cohort born during the post-World War II baby boom has been driving change in the age structure of the U.S. population since their birth,” the Census Bureau says. “This cohort is projected to continue to influence characteristics of the nation in the years to come.”
The burgeoning older population will require a change in the outlook of financial advisors who want to gain clients from this area, says Robert Klein, president of theRetirement Income Center, a registered investment advisor in Newport Beach, Calif., and author of Retirement Income Visions.
“This is the hottest market for financial advisors, who will want to get up to speed on issues important to retirees,” Klein says. “It is a different mindset serving this population from serving younger people who are focused on accumulation.”
Advisors should take advantage of educational courses that are being developed to help them serve baby boomers, Klein says. “Advisors who want to service this market need to specialize in it.”
The American College of Financial Services in Bryn Mawr, Pa., has developed a Retirement Income Certified Professional designation to help educate advisors on serving baby boomers, 7,000 of whom will turn 65 every day for the next 17 years, according to The American College. It is one of the college’s most popular programs, says Klein, who recently earned the designation.
“This is a great time to be a financial advisor because there are a lot of people looking for answers,” says Mark Kemp of Kemp Harvest Financial Group in Harleysville, Pa., a retirement services firm. “People who have been accumulating assets need to be asked: Do you know how to make the money last? Do you have a rainy day fund? Have you addressed inflation? Do you have money set aside for medical costs? They will need a financial advisor.”