Baby Boomers Retiring
What are the baby boomers retiring now looking for? To answer this question we need to take a look at history.
The Time Magazine Man of the Year issue dated Jan 6, 1967 did not show a man - but a generation - the Baby Boomer generation.
The Man of the Year was all people twenty five and under.
Baby boomers retiring now are part of the largest generation in history - those born from 1946 after World War II ended to 1964 before the American ground war in Vietnam.
Baby boomers feel in control of their destiny partially because they were reared in a prolonged period of world peace.
The baby boomer generation is a new kind of generation. They have been trend setters and baby boomers retiring now are not planning on a traditional retirement of leisure.
Baby boomers are healthier and will generally live longer than their parents. They will need more money than their parents needed to live their idea of a comfortable retirement lifestyle.
Baby boomers need an active lifestyle. Add to that the fact that they did not save a lot of money and love to spend money, you get the result that in retirement they will probably continue to work.
Baby boomers believe that it is not wise to repeat the life pattern of their parents. They feel they need to continue to improve their talent and to contribute to the world.
Financing Their Retirement
A small percentage of baby boomers retiring now are feeling well prepared financially, while a larger percentage expect retirement to be financially difficult. There are some who feel they will manage okay.
Baby boomers retiring now don't look or feel their age, so they tend to think they have plenty of time to plan.
Today, it's up to baby boomers retiring to develop a plan on their own to attain the retirement they will need. It is up to them to ensure their retirement income will be adequate for their expected lifetime.
There will be a Social Security benefit that surely will not be enough to live on. However, we all know that the stability of Social Security is shaky. Defined Benefit pensions from employers are gradually ending.
401K's, traditional IRA's, and Roth IRA's are additional sources of retirement income. However, the 401K's and traditional IRA's have a required minimum withdrawal, beginning at 70 1/2 years old, which will reduce the retirement savings perhaps sooner than expected.
For the baby boomers retiring, their homes are being considered a source of retirement income, which is something their parents would have never thought to do.
Some of the baby boomer generation have had high income and accumulated wealth for their retirement, while others were forced to live from paycheck to paycheck because of losing their jobs perhaps several times and having to start over.
Financial stress will continue for baby boomers retiring now unless they become diligent in their planning for retirement. A good financial advisor is well worth using in doing that planning.
Baby boomers retiring now may be the first generation to outlive their savings. It's good advice to save as much money as you can and get out of debt to help your savings last throughout your lifetime.
One way baby boomers are taking control of their financial future is by starting a business in their retirement years. This becomes more possible now because of the internet and an information starved world.
As a member of the baby boomer generation you need to do your due diligence to:
- Make sure you take full advantage of your company retirement benefits, such as, company match on 401K contributions (that's free money!).
- Do not withdraw money from your retirement plan, if at all possible, as you will lose valuable interest that will not be able to be replaced. I learned this firsthand as I had to withdraw a couple times and now I can see the impact.
- Plan to be out of debt as soon as possible, but at least before you retire. This would make retirement less stressful financially.
- Make an appointment with a financial advisor who has experience counseling retirees and has stayed up to date with retirement plan tax law changes. This step can help you pay less taxes.
- Evaluate your options and develop your plan.
- Make sure you properly plan for health care costs.
- Get a second opinion.
Living Their Retirement
Baby boomers retiring now are looking to retire in active adult communities as they feel too young and too healthy for retirement communities, assisted living facilities, or nursing homes. They want to own their residence, but don't want to bother with outside maintenance. Read my article on
independent retirement living.
Baby boomers are no longer looking forward to living on a golf course. The most popular setting that baby boomers are choosing is a view of 'fresh water' and 'green space' - lakes, ponds, fields, trees, etc.
Retirement is a wonderful time to live the life of your dreams. You can achieve new successes, learn new skills, visit new places, start new businesses, develop new friends, and enhance your family relationships.
Enjoying Work in Retirement
Baby boomers retiring now plan to keep working and earning, but will often choose to cycle between periods of work and leisure - creating a new model of retirement. They will retire from their current job, but launch into an entirely new career that they enjoy.
However, you need to plan for the possibility of not being able to work indefinitely.
Flexible work schedules and flex-retirement will become more common. Work today is better suited to seasoned adults with years of stored knowledge. It's more of an information age than a physical labor work environment.
Baby boomers will opt for semi-retirement, doing what they enjoy, to ease into the full retirement stage of life.
Starting your own business - becoming an entrepreneur or infopreneur - is an increasingly popular choice. People still need information. The type of information they need or want may change, but the need itself never goes away. This creates a great opportunity for new businesses.
I recommend that anyone who has not already started their own online infopreneur business, needs to do it now. I'll tell you how on future pages of this website.
By earning money in an enjoyable job or business, baby boomers retiring will not have to tap their retirement savings until much later. That gives the advantage of additional years of compounding interest/returns and fewer years of distributions.
Return from baby boomers retiring to planning for retirement.