WASHINGTON, March 14 (UPI) -- The first of the U.S. baby boomers will turn 59 1/2 in 2005, which could impact the market through early IRA withdrawals.
That is because the 59 1/2 is the earliest age when money from the individual retirement accounts can be withdrawn without tax penalty.
While no one expects a huge IRA drawdown immediately, some financial analysts are concerned what boomer retirement will do to the stock market, the Christian Science Monitor reported Monday.
The newspaper said if the nation's 80 million boomers fund their golden years by pulling their trillions out of stocks and bonds, the markets could tumble.
But other analysts say the threat is overblown because markets are far too complex to judge using generational shifts alone.
The nation's likely cash crunch also can be affected when the first of the baby boomers also become eligible for early Social Security payments after three years when they reach 62.
But there's also the likelihood boomers may be working until age 71 or 72 whether they like it or not, says one economist.
