Baby Boom Benefits:
A Parametric Analysis (first-order approximation)
Matrix One:
Assume:
(1) size of cohort is ~76 million (born 1946-1964)
(2) 76 million / 18 years = ~4.2 million yearly (linear)
(3) ~$1,000 monthly benefit per retiree
(4) zero death rate 2008-2025 A.D.
Yr Count Total Retired Benefits/yr Total Benefits Year
-- ----- ------------- ------------- ---------------- ----
01 x 4.2M = 4,200,000 x $12,000/year = 50,400,000,000. 2008
02 x 4.2M = 8,400,000 x $12,000/year = 100,800,000,000. 2009
03 x 4.2M = 12,600,000 x $12,000/year = 151,200,000,000. 2010
04 x 4.2M = 16,800,000 x $12,000/year = 201,600,000,000. 2011
05 x 4.2M = 21,000,000 x $12,000/year = 252,000,000,000. 2012
06 x 4.2M = 25,200,000 x $12,000/year = 302,400,000,000. 2013
07 x 4.2M = 29,400,000 x $12,000/year = 352,800,000,000. 2014
08 x 4.2M = 33,600,000 x $12,000/year = 403,200,000,000. 2015
09 x 4.2M = 37,800,000 x $12,000/year = 453,600,000,000. 2016
10 x 4.2M = 42,000,000 x $12,000/year = 504,000,000,000. 2017
11 x 4.2M = 46,200,000 x $12,000/year = 554,400,000,000. 2018
12 x 4.2M = 50,400,000 x $12,000/year = 604,800,000,000. 2019
13 x 4.2M = 54,600,000 x $12,000/year = 655,200,000,000. 2020
14 x 4.2M = 58,800,000 x $12,000/year = 705,600,000,000. 2021
15 x 4.2M = 63,000,000 x $12,000/year = 756,000,000,000. 2022
16 x 4.2M = 67,200,000 x $12,000/year = 806,400,000,000. 2023
17 x 4.2M = 71,400,000 x $12,000/year = 856,800,000,000. 2024
18 x 4.2M = 75,600,000 x $12,000/year = 907,200,000,000. 2025
------------------
$8,618,400,000,000.
===================
Summary:
Cumulative cost of Baby Boom benefits (18 years): $8.6 trillion
Annual cost of Baby Boom benefits (year 2025): $907 billion
Further analysis must factor in expected death rate:
Matrix Two:
Assume:
(5) average life expectancy is 75 years (both genders)
Yr Count Total Retired Benefits/yr Total Benefits Year
-- ----- ------------- ------------- ---------------- ----
01 x 4.2M = 4,200,000 x $12,000/year = 50,400,000,000. 2008
02 x 4.2M = 8,400,000 x $12,000/year = 100,800,000,000. 2009
03 x 4.2M = 12,600,000 x $12,000/year = 151,200,000,000. 2010
04 x 4.2M = 16,800,000 x $12,000/year = 201,600,000,000. 2011
05 x 4.2M = 21,000,000 x $12,000/year = 252,000,000,000. 2012
06 x 4.2M = 25,200,000 x $12,000/year = 302,400,000,000. 2013
07 x 4.2M = 29,400,000 x $12,000/year = 352,800,000,000. 2014
08 x 4.2M = 33,600,000 x $12,000/year = 403,200,000,000. 2015
09 x 4.2M = 37,800,000 x $12,000/year = 453,600,000,000. 2016
10 x 4.2M = 42,000,000 x $12,000/year = 504,000,000,000. 2017
11 x 4.2M = 46,200,000 x $12,000/year = 554,400,000,000. 2018
12 x 4.2M = 50,400,000 x $12,000/year = 604,800,000,000. 2019
13 x 4.2M = 54,600,000 x $12,000/year = 655,200,000,000. 2020
14 x 4.2M = 58,800,000
(
4,200,000)
54,600,000 x $12,000/year = 655,200,000,000. 2021
15 x 4.2M = 63,000,000
( 8,400,000)
54,600,000 x $12,000/year = 655,200,000,000. 2022
16 x 4.2M = 67,200,000
(12,600,000)
54,600,000 x $12,000/year = 655,200,000,000. 2023
17 x 4.2M = 71,400,000
(16,800,000)
54,600,000 x $12,000/year = 655,200,000,000. 2024
18 x 4.2M = 75,600,000
(21,000,000)
54,600,000 x $12,000/year = 655,200,000,000. 2025
------------------
$7,862,400,000,000.
===================
Summary:
Cumulative cost of Baby Boom benefits (18 years): $7.9 trillion
Annual cost of Baby Boom benefits (2020-2025): $655 billion
Further analysis must factor in a declining birth rate
after birth control circa 1964: using the above assumptions,
the 4.2 million who die in 2026 are replaced by a smaller average
number of new retirees.
Matrix Three:
Assume:
(6) average birth rate drops to 3.2 million per year after 1964
(7) average death rate stays at 4.2 million per year thru 2039
when Baby Boom is gone (net -1 million change per year)
Yr Count Total Retired Benefits/yr Total Benefits Year
-- ----- ------------- ------------- ---------------- ----
19 54,600,000
(
1,000,000)
53,600,000 x $12,000/year = 643,200,000,000. 2026
20 52,600,000 x $12,000/year = 631,200,000,000. 2027
21 51,600,000 x $12,000/year = 619,200,000,000. 2028
22 50,600,000 x $12,000/year = 607,200,000,000. 2029
23 49,600,000 x $12,000/year = 595,200,000,000. 2030
24 48,600,000 x $12,000/year = 583,200,000,000. 2031
25 47,600,000 x $12,000/year = 571,200,000,000. 2032
26 46,600,000 x $12,000/year = 559,200,000,000. 2033
27 45,600,000 x $12,000/year = 547,200,000,000. 2034
28 44,600,000 x $12,000/year = 535,200,000,000. 2035
29 43,600,000 x $12,000/year = 523,200,000,000. 2036
30 42,600,000 x $12,000/year = 511,200,000,000. 2037
31 41,600,000 x $12,000/year = 499,200,000,000. 2038
32 40,600,000 x $12,000/year = 487,200,000,000. 2039
33 40,600,000 x $12,000/year = 487,200,000,000. 2040
34 40,600,000 x $12,000/year = 487,200,000,000. 2041
35 40,600,000 x $12,000/year = 487,200,000,000. 2042
36 40,600,000 x $12,000/year = 487,200,000,000. 2043
-------------------
$17,724,000,000,000.
====================
Summary:
Cumulative cost of all benefits (36 years): $17.7 trillion
Annual cost of Baby Boom benefits (2020-2025): $655 billion
Annual cost of benefits after Baby Boom (2026-2043) $643-487 billion
Sincerely yours,
/s/ Paul Andrew Mitchell, B.A., M.S.
Private Attorney General, Criminal Investigator and
Federal Witness: 18 U.S.C. 1510, 1512-13, 1964(a)
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