Recently, Chariman of the Federal Reserve Board, Ben Bernanke, predicted dire economic consequences of having left the issue of Social Security so late. His remarks concern the impending retirement of the Baby Boomer generation, with the first of them just one year from retirement age.

But will it be as economically destructive as we think? Some say: not necessarily.

The plain fact is that most boomers have not done enough to plan for retirement and won’t be retiring at age 65 because they simply can’t afford to. A survey conducted by Merrill Lynch found that nearly 80% of boomers intend to keep working beyond age 65.

Although boomers are expected to live longer than any other generation in American history, potentially bankrupting Social Security and Medicare, improved health will also allow them to work longer and continue to contribute to the economy, rather than retiring. Additionally, better health (as evidenced by the dropping rates of death from heart disease, stroke and even cancer) indicate that the boomer retirees will be less dependent than other generations, lowering medical costs and long-term care expenditures.

The boomer generation has always been different and did everything differently from all generations that came before them. Their ideas and actions changed the face of society and perhaps the course of history. When it comes to growing older, it is likely they will do that differently from other generations as well.

According to the Boston College Center for Retirement Research, today’s workers are at risk of having insufficient resources at retirement. With lifespans lengthening, the retirement age rising and poorly funded 401K accounts, the baby boomer faces an uncertain future.

But housing equity is growing and offers at least one source of retirement funding for the baby boomer - a reverse mortgage.

In Will Reverse Mortgages Rescue the Baby Boomers? by Andrew D. Eschtruth, Wei Sun, and Anthony Webb, the authors explore the complicated subject of accessing home equity through reverse mortgages.

When the first baby boomers reach retirement age in 2008, there will be about five working-age people for each person 65 and older. By the time the last of the baby boomers retire in 2030, the number drops to about 3 working-age people per retiree.

Ben Bernanke, Chairman of the Federal Reserve Board made these remarks in a speech before The Washington Economic Club, on October 4:

Over the next few decades, the U.S. population will grow significantly older, a development that will affect our society and our economy in many ways. In particular, the coming demographic transition will create severe fiscal challenges, as the cost of entitlement programs rises sharply.

In his speech, Bernanke outlined possible responses to the fiscal challenges of our aging population, including encouraging older workers to remain in the workforce longer. He added that a slower growth in the labor force will motivate employers to attract and retain older workers.

Read the full speech here.