Top 10 Retirement Worries That Baby Boomers Have (And What To Do About Them)

The Baby Boomer generation is heading toward retirement! In fact, from now until 2030, over 10,000 Boomers will hit retirement age every day. Going from full-time employment to endless free time often causes more stress, especially for those who haven’t started planning for it yet. If you’re a Boomer nearing retirement, this article is for you. Here are the top 10 retirement worries Baby Boomers have..and how you can overcome them.

1. Outliving Your Money

The average life expectancy in 2023 is 79 years old. Unsurprisingly, many Boomers fear they may outlive their money. The solution? Start saving and investing sooner rather than later. Additionally, a financial planner can help you develop a budget and suggest the best investment strategies to achieve your goals. his is a common fear, especially as people live longer lives. Survey results indicate that 60% of baby boomers worry they will outlive their savings and not have enough money to see them through their retirement years. One solution is to save more and invest wisely. A financial planner can help you develop a budget and suggest the best investment strategies to achieve your goals. You may also consider downsizing your home and cutting your expenses. Aim to save at least 15% of your income for retirement and budget, budget, budget!

2. Healthcare Costs

In an ideal world, we’d have perfect health well into our golden years. Unfortunately, that’s not the case for most older adults. And even more unfortunately, healthcare costs can quickly eat through your savings and put a significant burden on your finances. One way to deal with this is by calculating your potential healthcare expenses and considering long-term care insurance. It’s important to consider all your options and choose the insurance plan that will provide the ideal coverage for your health needs and budget. Furthermore, eating right and exercising may decrease your chances of developing serious conditions, like heart disease and diabetes. Experts recommend purchasing long-term care insurance, ideally in your 50s, as a way to help defray medical costs in later life. Health savings accounts (HSAs) can also be beneficial due to their major tax benefits.

3. Changes to Social Security

The Social Security Administration provides monthly retirement benefits to almost 50 million Americans. However, demographic shifts have placed the SSA on track for insolvency in the 2030s. The current high inflation rates, which result in an increase in monthly benefits, could speed up the insolvency timeline. For those nearing retirement age or already retired, here’s some good news: your benefits will likely be protected. However, with an unpredictable political climate, it’s essential for Boomers to prepare for any eventuality. You can compensate for the lost income by tapping into home equity, minimizing expenses, delaying retirement, or taking up a retirement job. Optimizing taxes and investments are additional ways to make up for the loss of income.

Social Security Information and Resources For Seniors and Retirees

4. Inflation

Inflation is no respecter of persons. It affects everyone, including retirees. However, there are steps that older adults can take to protect their savings. Consider investing in inflation-protected securities or indexes such as TIPS (Treasury Inflation-Protected Securities), which provide investors with protection against inflation. Additionally, decreasing expenses or finding ways to supplement your income may also help you fight inflation.

5. Becoming a Fraud Victim

Fraud can affect anyone, but the elderly population may be particularly susceptible. Criminals take advantage of the fact that retirees are frequently home alone during the day. First, it’s important to be cautious. If something appears too good to be true, then it probably is. Of course, phone and internet scams are only two branches of the rotten tree that’s fraud. Remember to also vet other service providers, such as contractors, financial advisors, and others. Check the Better Business Bureau before you hire anyone for any job. Remember—it’s always better to be safe than sorry.

6. Running Out of Savings

It’s no secret that life is expensive. Many Boomers may fear that all their saving, budgeting, and scrimping may not amount to much in the end. After all, nobody has unlimited income! If you’re a Boomer who’s worried about your dwindling cash supply, there are some precautions you can take NOW. One tip is to work longer and delay collecting Social Security as long as possible. After all, your Social Security benefit amount increases by 8% for each year you delay collecting benefits after you reach your full retirement age. You may also want to consider making catch-up contributions. Also, carefully review your budget and calculate your cost of living. Make adjustments as necessary!

7. Long-Term Care Needs

Most Boomers don’t want to consider the possibility that they might someday need long-term care, such as assisted living or home health care. However, even the most healthy Boomer needs to have a long-term care plan in place. While the prospect may be daunting, make sure you research long-term care insurance options! Additionally, you can explore community-based services and support networks and plan for potential caregiving needs in advance. Be sure that you consider the costs and have a general idea of how much you might be paying beforehand!

8. Maintaining Lifestyle

A lot of Boomers enjoy their lifestyle. They may take frequent vacations, RV trips, or even take the occasional. However, as Boomers begin to face retirement, a question that may arise is whether or not they can maintain their lifestyle without a weekly paycheck to support it. First, assess your current spending habits. Track your spending carefully and do the math. Then adjust your lifestyle expectations if necessary and explore more affordable leisure activities and hobbies. There are plenty of low-cost hobbies that Boomers can enjoy and thrifty ways to save money on vacations!

9. Identity and Purpose

While financial worries top the list for most Boomers, others may face more emotional fears. Many older adults’ jobs may give them a sense of fulfillment and purpose. Unfortunately, retiring can lead to a loss of identity for some individuals. Fortunately, there are ways that you can still be active, productive, and fulfilled after you retire! Plan for meaningful activities and pursuits in retirement. Volunteer or engage in part-time work to stay active and connected. And, of course, prioritize relationships with family and friends.

10. Legacy and Estate Planning

Concerns about leaving a financial legacy for loved ones are common. While you could waste precious time fretting about it, it’s better to be proactive and have a plan in place so you can enjoy retirement to the fullest! First, review and update your estate plan regularly. Contact a professional estate planner for guidance. Additionally, make sure that you communicate your wishes with family members. You can also cnsider strategies such as gifting and trusts to minimize estate taxes and ensure your assets are distributed according to your wishes.