Baby Boomers And Retirement:
What To Do When You’re Not Ready
Baby Boomers And Retirement: What To Do When You’re Not Ready
Baby Boomers, who are those born between 1946 and 1964, make up about 20 percent of the American and Canadian population. Many Baby Boomers are now age 65 or older and the rest are close to retirement age. However, many of them are not ready for retirement in terms of finances. They are unsure if they have enough to retire with and this is concerning.
There are various reasons why they may not be able to retire comfortably. Lack of planning, a volatile stock market, and significant debt are but a few reasons. Even so, there are steps Baby Boomers can take now if they haven’t fully prepared for the kind of retirement scenario they desire.
Baby Boomer Tips For Retirement
While this may seem like a late age to start planning, it’s not too late. The following are some tips to help you if you’re feeling like you won’t have enough money to retire comfortably.
1. Start A Plan
Whether you’re 50, 55, or 60, it’s time to get a solid plan in place for retirement. If you keep doing what you have been doing, you’ll get the same results. There’s a lot of helpful information online that will help you get a plan in place. And, there are financial advisors who can assist you. The key is to actually implement a plan to start saving toward retirement. Even if your funds are in short supply right now, you can still do things like pay down debt and put even a little bit away each month into a retirement account.
2. Extend Your Retirement Date
While most people want to retire as soon as they can, it may not be feasible if you’ve been lagging on your retirement savings. There used to be an advertising campaign that promoted retiring at age 55 (Freedom 55), but for most people, that’s not likely to happen. In fact, many people who do retire at 55 end up going back to work because they miss working and their routine. If you aren’t retiring with plans as to how to spend your free time, you could end up bored or unhappy.
The reality is that you may have to extend your retirement date to keep putting that money away, and that’s all right.
3. Stick To A Good Budget
One reason many Baby Boomers cannot retire comfortably is because they’ve spent many years not planning or sticking to a solid budget. They may overspend, make poor financial decisions, or not save at all. Budgeting may seem like an old-fashioned task, but it’s actually very powerful when used.
If you don’t have a solid budget, perhaps it’s time to create one, and make a firm commitment to stick to it methodically. It might not be easy at first, as you may be used to just doing whatever you want financially without thinking about budgeting. But you’ll get better at it the more consistent you are. It can make a huge difference when you budget wisely. Be sure you’re saving money toward retirement, too!
4. Phase Out Of Your Job
These days, many people plan for a phased retirement, so-to-speak. This means that instead of stopping work completely, they’ll go from working five days a week to three. Then, later on down the road they may go to two or one day a week. Some may even work six months a year, rather than all year.
They phase out of their job purposefully, and many truly enjoy it. Those that tend to stop working abruptly to retire tend to not like their jobs or they might have burned out. Those that phase out tend to enjoy their job more, whether it’s the job itself or just being around co-workers and the public.
5. Get A Job You Love
When you love your job, you may not want to retire at any point soon. Those that report that going to work is something they enjoy, are not as eager to retire at a certain age. Do you love your job? If not, maybe you can think about going after the kind of job that you would love and stay there for the next 10 or 15 years. Sure, it can be scary to change jobs mid-life, but it’s possible. If you need some support, find yourself a good career or life coach to help with the transition. Think about the possibility of waking up each workday happy about going to work, rather than dreading it.
Don’t forget to stick to your newly created budget and retirement plan, too!
The Bottom Line
The bottom line is that all hope is not lost if you’re hitting retirement age and are not quite prepared to retire fully. Take these tips into consideration and be optimistic that as you become more proactive towards retirement savings, you’ll reach your goals. And, remember to enjoy the journey too, whether you’re nearing retirement or retiring now. Money is valuable, and life is, too, so make the best of both!