Still, other countries have an even higher proportion: Japan tops the chart with 25.8% in 2014 and a projected 40.1% in 2050. Other countries with a high concentration of seniors include developed countries such as Germany, France, and Canada.
Unfortunately, retirees have less savings (partially attributed to the financial crisis) and carry more debt than previous generations: 70% of Boomers between 50 and 64 and 40% of Boomers 65+ still owed money on their home in 2010. Non-housing debt (such as credit card and auto loan debt) among boomers aged 65+ surged from $4,300 in 1992 to $7,200 in 2010. CNN Money brought attention to the fact that the number of senior households living on less than $15,000 (below the poverty line) is expected to increase by an astonishing 37% in 10 years. The fact that many will have to put over 30% of their income toward housing means they will have to cut back on other expenses such as medical care and transportation.
Federal rental assistance does exist; however, only one-third of eligible low income seniors received assistance in 2011. Opinions on how to remedy this precarious situation vary, from improved in-home senior programs, senior tax relief, and increased federal rental assistance.What does this mean for the rest of the population? When Boomers retire they reduce production and consumer spending and increase dependence on others (such as their children and the government), resulting in overall slower economic growth. Key indicators that speak to this trend include the labor force participation rate (the ratio between those working or actively looking for work and the overall population) and the dependency ratio (the number of people outside of working age--under 18 or over 64--per 100 adults between those two limits).
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