Boomers turning 60 signal change

WASHINGTON, Dec. 26 (UPI) -- Officials say a "demographic tsunami" is preparing to descend on the United States as baby boomers head into their 60s.

The first of 78.2 million boomers turn 60 next year and will become eligible for Medicare and full retirement under Social Security five years later. Some will begin to take early retirement under Social Security in just two years, The Washington Times reported Sunday.

"We have a tremendous demographic tsunami descending on us, and we have to start preparing now," says Paul Hodge, director of the Global Generations Policy Initiative at Harvard University.

By 2050, 5 percent of the population will be 85 years or older -- three times today's rate.

"On the path that we're headed on today, either there have to be dramatic changes in entitlement programs and other federal spending, or dramatic tax increases to close the fiscal gap," says David Walker, head of the Government Accountability Office, the federal government's chief watchdog agency.

Douglas Holtz-Eakin, director of the Congressional Budget Office, says leaders must decide how much money they want to devote to older Americans in the future. Once the appropriate level is set, leaders must decide which programs to spend that money on.