However, beyond a general economic slowdown, there are some other economic implications. Social Security and Medicare are good examples; the retirement of the baby boomer generation is expected to lead to large deficits in both programs. There is much debate over the best way(s) to fix these programs, but the transition of the baby boomer generation from paying in to collecting benefits is expected to be costly.
For investors, the retirement of the baby boomer generation could create some interesting opportunities, especially in healthcare. The older segments of the population are expected to double (or more) in size over the next couple decades; older Americans use healthcare services more often and spend more when they do. Opportunities that could arise from the retirement of baby boomers include senior housing, pharmaceutical research, medical office real estate, and more.