If you were born between the years of 1946-1964, you are officially a baby boomer – part of the generation which was born during the post war years when there was a large increase in the population of the western world. The reason for this increase of the population is due to the social pressure which was placed on people in the 20 years before 1946 not to start a family. This been due to the Great Depression and subsequent world war, upon which during that time, most people (and ultimately the government) couldn’t afford to keep large families going. Yet in-between 1946-64, the global economy took a turn for the better with post-war repairs and growth, hence more child births.
Fast forward to nowadays and the children born during that era (maybe yourself included) are either starting retirement or facing retirement within next 15 years or so. In other words, every year for the next 15 years will see the number of retirees jump up by a certain percent. Whilst this in itself is perfectly natural and right (you worked all your life, you deserve a decent retirement) the problem is that the economy is in a not-so good shape. Nearly all the countries in the world are up to their eyeballs in debt, with some (like Greece) having already gone under.
Can our economy as well as most other economies in the world, upon who each have their own baby-boomers survive? I would like to say yes but I can’t honestly see this happening. Since the Great Recession of 2008, the global economy as a whole has being creaking – struggling. Whilst it is true that some countries’ economies are doing better than others, none seem to be out of the woods and with the growing excess demand which is going to be put on the governments each year for the next fifteen years via increased state pensions, the outcome doesn’t look too positive.
As you probably gathered from the title of this article, it is highly likely that an economic crash of some sort will occur. Many economists in fact say that one should already have occurred but due to all the central banks printing money (commonly known as Bailout Packages or Quantitative Easing) the crash hasn’t being prevented, just delayed. Or better way to put it, forfeited for a bigger crash in the not-to-distant future.
So as a pensioner (or soon to be pensioner) what can you do to protect yourself if the worst were to happen? How bad can things actually get? Well if there is an economic crash, the one thing which the governments of the world will probably do on a one-by-one basis is reduce state pension (if your country has one) as well as go after what funds you have in any other pensions you’d have in the form of tax. And your savings won’t be safe either.
Therefore now is the time to prepare. I don’t mean to sound like a doom-monger but if you want to survive the coming storm, now is the time to start building some sort of financial life raft. Whilst the governments can take your pensions, savings, what it seems they won’t be able to get hold of are any income producing assets you owe – especially those which are online! Despite all the government regulations, the internet is still a relatively free domain – a bit like the old Wild West. At present, most politicians aren’t even aware of these assets, let alone how to create laws in order to confiscate ones website, info product, etc from one for the general good of society (a saying most bankrupt governments make when they want your money)!