The economic meltdown of 2008 is now history although its effects will be felt for a long time to come. Unlike any other downturn, this one is compounded by two other major forces globalisation and demographic change that are ongoing with no signs of slowing down. These are major forces of change that affect all of us and impact the way we work, plan and save for retirement regardless of age.

Globalisation has meant that the meltdown on Wall Street is causing economic hardship around the world, including poorer countries that were only just beginning to feel the benefits of being part of a global economy. Bermuda is no exception. And demographic change was described in an article in this newspaper on June 24 that had the title '65 and older population to triple by 2050'. That is only 40 years away, and unless we get our collective act together our children and grandchildren will carry an enormous burden.

In trying to understand what all this means for our future social and economic wellbeing, we realise there is usually a lag between major events that take place overseas and their impact on Bermuda. There is also a lag between major events and research that helps us plan for the future.

Fortunately, reports that are based on valid research are beginning to come in, and the results show that the economic meltdown of 2008 has without doubt affected us in profound and unexpected ways. One very informative report is 'Retirement at the Tipping Point: The Year That Changed Everything' by Age Wave (see www.agewave.com).

Age Wave partnered with Harris Interactive to conduct research on the impact 2008 has had on four generations a critically important component as an ageing population affects every one of us, not just retirees. The following are some of the major findings:

1) Today's pre-retirees will need to postpone retirement 4.2 years on average. Uninsured costs of healthcare are the biggest potential financial wildcard in retirement.

2) After decades of out-of-control spending, Americans must get back to basics and learn to live within their means in order to find peace of mind.

3) Americans define success as having loving family and friends, but the sandwich generation parents and children has turned into multi-generational 'Rubik' families of growing interdependence for care and support [including financial support].

4) Americans are beginning to re-vision retirement as a time of new purpose, new priorities, new careers, and new opportunities to give back to the world.

Another major and somewhat startling finding of this report is that of the four generations surveyed Millennials (ages 21-32), Generation X (ages 33-44), Boomers (ages 45-63), and Silents (ages 64-84) the Millennial generation has made the most radical change in their thought patterns.

One year ago, a comparable study by Age Wave called 'Rethinking Retirement' revealed that 21-32 year-olds were considered "the most self-indulgent and short-sighted of all generations". In 2009, they are reported as the "most likely of the four generations to say they have learned valuable lessons regarding financial responsibility". In 2008, 63 percent of Millennials reported "living within your means" as the most valuable lesson parents could teach their children. In the 2009 study, this number jumped to 81 percent. This was twice the rate of changed thinking reported by the other three generations, with Millennials feeling the greatest burden when it comes to future financial support for family members.

What does this mean for all of us? It seems the younger generation have got "it", and got it quickly. The rest of us are a bit slower on the uptake to our detriment.

We all need to step back, take a deep breath, assess the damage from 2008 and plan for the future. Anything less is the equivalent of sticking our heads in the sand. We Government, employers, workers, pre-retirees and retirees need to rethink retirement to take a future financial burden off our children and grandchildren.

We also need to remain optimistic. As the research shows, retirement is a time of new beginnings, and sticking our heads in the sand means that we will miss out on some amazing opportunities.

Marian Sherratt is President of SORCOS, a social research and consulting firm. She writes on issues concerning our ageing population each month in The Royal Gazette. Send e-mail responses to m.sherratt@sorcos.com">m.sherratt@sorcos.com.