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 5 retirement worries Baby Boomers have..and how you can overcome them.
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!
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.
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.
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.
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.
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Originally published June 21, 2023