There are about 76 million Baby Boomers in the United States, and more than 40 millionwho are already age 65 or older.
As a generation, boomers have shaped and altered every life stage they’ve moved through, and their retirement years will be no exception. Baby boomers will retire at a rate of 10,000 per day through at least 2030, when almost 73 million Americans or 20 percent of the U.S. population, will be age 65 or older.
A sad statistic however, is that approximately 35 million Boomers lack any retirement savings. The grim legacy for many Boomers, after long working lives spent caring for families, putting children through college, and perhaps caring for their own parents, will be to struggle financially in retirement as they live long lives, exhaust their limited financial resources, and find that their only income in their later years is a Social Security benefit that may be largely consumed by expenses for health care.
Boomers will need to lower their expectations, and downsize significantly or they risk exhausting financial resources. The next 20 years we may see some interesting and creative solutions for Boomers. For those with moderate savings, these Boomers will need advice and guidance to ensure their limited financial resources are not exhausted during what may be a 25-year retirement, or even longer.
Feeling secure about the future is not an easy fete, as it is difficult to be confident about a goal that is years away without having made a plan or taken steps to achieve that goal. So what can you do about it?
Do not stop contributing to your retirement account: Engage in positive financial behaviors and try not to withdrawal prematurely.While premature withdrawals are not as common as in 2011, this was trending down prior to spiking this year. Every penny counts, so keep saving.
Understand the difference between your working lifestyle and retirement: While we would all love to live the high life during retirement, not having a steady pay check is a consideration one should take when getting into their retirement lifestyle. Dinners out and excursions may have been had often, but during retirement, luxury items may need to be spaced out more infrequently.
Take care of your health: One of the biggest line items for boomers heading into retirement is healthcare and medications. Remaining active, eating well and balancing stress is a sure fire way to relieve some of the financial burdens associated with poor health.