NEIL: FOR ALL THE YOUNG PEOPLE
OUT THERE, BABY BOOMERS THAT
WOULD BE ME, WE'LL NEVER RETIRE.
WE WILL WORK TILL I DIE.
THAT IS APPARENTLY A TREND GOING
ON ACROSS THE COUNTRY, ACTUALLY
ACROSS THE WORLD.
ONE THAT ENORMOUS ECONOMIC
IMPLICATIONS.
"BARRON'S" ASSOCIATE PUBLISHER,
ONE OF MY FAVORITE PEOPLE ON THE
SHOW, JACK OTTER, WHAT THAT
COULD MEAN LONGER TERM FOR YOU
AND YOUNGER PEOPLE AS WELL.
>> I GUESS IT MEANS I WON'T GET
YOUR JOB?
NEIL: NO.
WHAT IS HAPPENING HERE?
NOW A LOT OF IT, WHATEVER THE
REASONS FOR OLDER, BABY BOOMERS
TO CONTINUE TO WORK BUT IT DOES
HAVE BIG IMPLICATIONS, RIGHT?
WHAT'S GOING ON HERE?
>> SURE.
FIRST OF ALL IT IS THE PERFECT
STORM IN THE SENSE THAT WE'RE
LIVING LONGER, WHICH IS GREAT.
BUT THAT MEANS YOU HAVE TO PAY
FOR A LOT LONGER TIME.
AT THE SAME TIME PENSIONS ARE
GOING THE WAY OF THE DINOSAURS.
PEOPLE ARE WORRIED ABOUT
SOCIAL SECURITY.
THE COLLEGE AGE, THEY HAVE
CHILDREN LATER.
NOW THOSE KIDS ARE GOING TO
COLLEGE.
THEY CAN'T STOP WORKING.
THEY HAVE TO PAY FOR COLLEGE.
THIS IS HAPPENING AT A TIME OF
MASSIVE DISRUPTION IN THE
ECONOMY.
SO TO BE HONEST WITH YOU, I
THINK IT IS A FAIRLY GOOD SIGN
THAT OVER 55s OF UNEMPLOYMENT
RATE OF 2.9%.
BUT I HAVE HUGE ADVICE FOR THOSE
PEOPLE WHO HAVE A KID IN
COLLEGE, NEED TO STAY WORKING,
WHICH IS DISRUPTION IS
ACCELERATING SO MUCH THAT
WHATEVER YOU DID IN YOUR 40s,
IF YOU'RE IN YOUR LATE 50s,
WILL BE VERY DIFFERENT.
YOU HAVE TO LEARN NEW SKILLS.
IF YOU WORK IN A FACTORY, WE'RE
ACTUALLY PRODUCING MORE THAN WE
EVER HAVE CONTRARY TO POPULAR
BELIEF BUT WITH FEWER PEOPLE.
YOU NEED THE PERSON WHO NEEDS TO
OPERATE THE ROBOT BECAUSE 10 OF
YOUR COLLEAGUES ON THE AS
ASSEMBLY LINE WILL LOSE THEIR
JOBS.
ONE WILL BE LEFT TO RUN THE
MACHINE ACTUALLY MAKING STUFF IN
THE FUTURE.
THAT IS IT TRUE ALL OVER THE
ECONOMY, NOT JUST IN FACTORIES.
NEIL: A DRAMATIC ISSUE RIGHT NOW
BUT CERTAINLY NOT, RECORD
UNEMPLOYMENT AMONG ALL GROUPS,
BABY BOOMERS, BUT I WONDER IF
WE'RE MAKING MORE OUT OF THIS.
>> IN SILICON VALLEY THEY HAVE
TO RAISE WAGES TO FIND NEW
QUALIFIED PEOPLE.
COMPLAINING NOT ENOUGH ENGINEERS
COMING OUT OF SCHOOL.
A LOT OF PEOPLE WITH BLUE-COLLAR
JOBS, THEIR DAD HAD A GREAT
INCOME FOR LIFE, NOT ONLY DO
THEY NOT HAVE HIS PENSION, BUT
THEY'RE LOSING THAT JOB AND HAVE
TO GO TO MUCH LOWER PAYING MORE
MENIAL JOB.
THAT IS THE UNDEREMPLOYED.
YOU'RE RIGHT, UNEMPLOYMENT RATE
IS LOW BUT THERE ARE A LOT OF
PEOPLE WHO ARE NOT MAKING WHAT
THEY USED TO MAKE.
THAT IS CAUSING --
NEIL: IS IT A DAMNING COMMENTARY
ON THINGS TOO?
THAT BABY BOOMERS CAN'T AFFORD
TO RETIRE WITH ADDED EXPENSES?
>> ABSOLUTELY.
NEIL: THAT WITH COLLEGE AND
THEY'RE NOT IN POSITION WHERE
THEIR PARENT WERE TO RETIRE?
>> TOTALLY.
THEY DON'T HAVE THE PENSION.
COLLEGE ACCELERATED IN TERMS OF
TUITION WAY PAST RATE OF
INFLATION.
HEALTH CARE IS BETTER BUT YOU'RE
PAYING FOR IT.
SO THAT IS A PROBLEM.
AMERICANS ARE LEFT TO DO THIS
ALL BY THEMSELVES.
THERE IS A FINANCIAL WRITER
INVESTOR BILL BERNSTEIN I HEARD
HIM ON A PODCAST, HE SAID IT IS
LIKE YOU'RE GETTINGPLANE, YOU
TURN RIGHT TO GO TO THE SEAT.
THE FLIGHT ATTENDANT SAID, NO,
TURN LEFT, YOU'RE FLYING TODAY.
YOU NEED TO CREATE A INCOME
STREAM FOR 30 YEARS AFTER WE'RE
QUIT WORKING.
WE'RE NOT PREPARED TO DO THAT.
NOBODY SAYS HOW TO SAVE THAT
MUCH, THE GEEKY WORD,
DEACCUMULATION STAGE, PAYING
YOURSELF.
YOU CAN'T PULL MONEY OUT OF A
SAVINGS ACCOUNT UNTIL IT GOES
DRY?
NEIL: WHAT WILL IT MEAN FOR
INHERITANCES?
>> THAT IS GREAT QUESTION.
AT THE WEALTHY END, IT IS
FANTASTIC.
A TRILLION DOLLARS A YEAR BEING
PASSED FROM BOOMERS TO THE NEXT
GENERATION.
THOSE ARE THE RICH FOLKS.
FOR A LOT OF PEOPLE, YEAH, MOM
AND DAD WILL TAKE A DOLLAR WITH
THEM.
NEIL: YOUR MOTHER AND I ARE
KEEPING EVERYTHING.
THAT USUALLY GETS THIS FORLORN,
WHAT?
>> TELL YOUR SON, WRITE YOU A
CHECK.
TOSS THAT IN THE GRAVE WITH YOU.
NEIL: EXACTLY.
>> SURE DAD, YOU CAN HAVE IT.