The younger generation has been waiting for what must seem to them forever for the boomers to relinquish their jobs and retire.

The boomers, that lucky generation born between 1946 and 1965, had easy access to education and employment in Canada when they were young. As they have moved up the career ladder gaining experience and seniority, they have formed a kind of invisible ceiling which many younger people cannot penetrate, based on the sheer size of the boomer cohort. In plain language, the boomers are occupying most of the senior jobs.

This has caused stagnation in movement for many young professionals who see opportunities opening up as the boomer generation retires.

But as a result of a healthier “old age,” a need to supplement their incomes due to losses sustained during the great recession of 2008-2009, and because of the current low interest rate environment, more boomers are rethinking their retirement plans. After all, why retire when 65 is the new 55?

What does this change in our societal patterns actually mean? Let’s look at some figures.

• The first of the boomers hit 65 in 2011.
• The fastest-growing five-year age group is the 60 to 64 group, which increased at 29%.
• 60% or more Canadians are working past 65.
• 55% of Canadians say they are not financially prepared for retirement.
• 42% say they have never saved for retirement.
• Only 27% of those between the ages of 30 and 65 say they plan to retire by 66.
• Approximately 26% of Canadians are still working full-time after 65.
• Approximately 36% are working part-time.
• 40% of the workers over 65 are self-employed; however, 50% of these people make $5000 or less per year.

But that is only part of the picture, because while boomers are staying at work longer, they are also putting increased pressure on our health care system and pensions.

Plus, Old Age Security (OAS) and Guaranteed Income Supplement (GIS) are now providing one-third of the income for all seniors while, shockingly, 55% of retired people over 55 have 3 or more chronic health conditions.

And even though those boomers who are still working have a definite impact on youth unemployment rates, which are double the average, the irony is that in future years we will be facing a labour shortage as the “dependency ratio” increases.

This becomes an even greater concern when examining an HSBC global study which indicates that Canadians’ retirement savings on average will last only 11 years after retirement, making seniors even more in need of a social safety net while we have a shrinking number of workers to pay into the system.

Putting all of this information together, it’s clear that Canadians can no longer count on a comfortable retirement as was enjoyed by the generation that came before. In fact, while we can make projections based on demographics and other data, no one really knows what will happen when the boomer generation starts to run out of money and starts making more demands on the health care system.

That’s why it is not only wise but imperative for younger people to have a financial plan in place for their future. The trend is clearly towards taking responsibility for their own retirement years while factoring in a longer life span.

See your financial advisor for professional help in planning for the future now. The more time you have to plan, the better prepared you will be.