This year, the first Baby Boomers turned 70, and that spells trouble for the economy and financial markets.

Speaking at Mauldin Economics’ Strategic Investment Conference, chief economist and strategist for Gluskin Sheff, David Rosenberg, dissected the wide-ranging implications of the wave of Baby Boomers now retiring.

Fifty Million Americans Aged Over 70 By 2030

“1.5 million Boomers turn 70 [each year] for the next 15 years. This is a depressant for growth. Research has shown once you hit this age, you cut back on your spending.”

Findings from RAND Corporation show that on average, a person’s consumption drops by 37.5% when they enter retirement. Given that consumption accounts for 70% of US economic activity, this is a major deflationary force.

Rosenberg goes on to say, “what makes this situation more acute is that only half of the Boomers that would like to retire, and this is why they can’t retire,