The issue of risks posed to senior investors has become a “hot” issue for financial regulators as the aging of the Baby Boom generation may pose special problems for financial professionals and thus for financial industry regulators. Why might this be the case?

The Baby Boom generation owns a considerable amount of financial assets, for it was really the first whose retirement needs were to be covered by defined contribution plans, as opposed to the defined benefit plans of the preceding generation.   Moreover, as the Baby Boom generation sells off its housing stock, its financial assets will grow.  Since this generation benefits from improved health care, it is likely to be long living and thus its members will be very interested in investing wisely so that their assets can cover their long post-retirement life span.

For financial regulators, this phenomenon presents a perfect storm:  an aging, but long living, generation with plentiful financial assets and a great interest in investment opportunities.  The basic problem facing the regulators is that the Baby Boom generation will be particularly at risk of abuse from unscrupulous financial professionals.