The Pew Research Center has reported that Baby Boomers are reaching age 65 at the rate of 10,000 a day. This retirement tsunami is putting pressure on all of our retirement safety nets, including Social Security, Medicare and private pensions. Many Baby Boomers have never recovered from the financial losses they incurred during the recession which began in 2008-2009. As a result, they often worry that they will never be able to retire.
In 2016, GoBankingRates surveyed 1,504 adults over the age of 55 and discovered that about 30 percent of them had absolutely no retirement savings. Another 26 percent said they had saved less than $50,000 for retirement.
This means that roughly half of all Baby Boomers will be dependent almost solely on their Social Security benefits when they stop working.
Fortunately, approximately 31 percent of people over the age of 65 reported they had $200,000 or more in their retirement accounts. However, other studies have confirmed that even those with sizable private retirement accounts are often concerned they will not have enough money to last the remainder of their lives.
Despite the fact that not all Baby Boomers are completely broke, the majority of them are stressed over how they will be able to rescue their retirement so they can actually enjoy their later years. All those dreams of travel, golf and lazy days of fishing seem out-of-reach. As a result, they hope to take advantage of all the financial planning advice they can get. With the proper assistance, most Baby Boomers will discover that their situation is not hopeless and it is not too late to get their retirement plans back on track.
How to Maximize Your Retirement Income
There are a number of ways Baby Boomers can salvage their retirement.
- Continue working until age 70, or as long as possible, to maximize your Social Security benefits.
- Downsize and reduce your cost-of-living a few years prior to retirement and put the money you save into your 401K or IRA. Try to maximize your annual deposits into your private retirement accounts and let the dividends and interest accumulate as long as possible.
- Once you are ready to retire from your pre-retirement job, look for an encore career … something you can do to supplement your retirement income. The options are endless. You could work part-time for your former employer, be a consultant and work from home, or find a fun job in an art gallery or gift shop. You could also take this opportunity to pursue the career you always dreamed you could have as an artist, writer, musician or tutor. The longer you can go without depending on your retirement savings, the more your accounts will have time to grow and the longer your funds will last when you can no longer work.
Get Professional Retirement Advice
In addition to working longer, saving more money, and pursuing an encore career, most people have discovered they do better when they seek out a professional investment advisor or financial planner to help them get the most from their the money they save. A financial expert can help you properly invest your money and decide when you should make withdrawals and how much you can withdraw in order to make sure your savings will last a lifetime.
Learn Everything You Can About Retirement
In addition to getting professional advice, you will want to do your own research about retirement. You will want to learn everything you can about the most affordable places to retire, how to keep yourself as healthy as possible, how to save money, travel advice and other topics which will make your retirement more enjoyable.
About the Author
Deborah Dian is the author of Baby-Boomer-Retirement.com which contains over 500 articles of interest to Baby Boomers, both before and after they retire. She and her husband are both Baby Boomers and currently live in an over-55 retirement community in Southern California. She works part-time as a freelance writer and her husband continues to work full-time from home. Her award winning website is free to read, easy to navigate, and is a great resource for anyone who plans to retire someday.