How Boomers Plan to Live in Retirement—and the Steps to Make It a Reality

According to a 2024 AARP survey , 20% of Americans aged 50 and older have no savings. saved for retirement While 61% worry about not having sufficient savings for their entire retirement, complicating factors such as fears of an economic downturn and rising costs persist; nevertheless, retirees remain optimistic about their future during this period.

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Recent data from Wealth Enhancement revealed that 77% of Americans view retirement positively and have specific objectives they wish to achieve during their retired years. The leading activities baby boomers look forward to encompass relaxation, family time, and travel. with strategic planning .

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Understand Your Monthly Earnings and Spending

The No. 1 goal for boomers is to relax as much as possible after leaving the workforce — 64% chose this option in the survey. To help enjoy a stress free retirement, Eric Mangold, CWS, founder of Argosy Wealth Management , recommended having a clear understanding of precisely how much income and expenses you have each month.

“When you are preparing to retire, you will want to know how much money you will need to come to you every single month, so you can do the things that you want,” he explained. “Remember, retirement is about income.”

He stated, "Once you figure out the total amount of income flowing in from different sources—like Social Security, pensions, annuities, rental earnings, investment returns—you should also assess your outgoing expenditures. These typically include costs for groceries, utilities, health care, mortgage payments if applicable, as well as taxes among others."

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Budget Correctly

Another way to prepare is understanding your needs from your wants and not only budgeting for essentials.

According to Peter Diamond , a federally licensed specialist in taxes, accounting, real estate, and structural certification with expertise in financial viability, states, "Retirement doesn't merely mean stopping work; it's about being able to afford the lifestyle you desire."

He explained, “ A significant number of retirees concentrate solely on amassing funds sufficient for their essential costs, yet genuine financial stability involves possessing additional resources for life’s pleasures. Indeed, distinguishing between necessities and desires is crucial; otherwise, effective budgeting becomes unfeasible. Nonetheless, one ought not limit planning merely to covering minimum requirements.

Mangold similarly highlighted the significance of setting up a budget for all your desired activities during retirement.

If traveling is something you aspire to do, you ought to set an amount representing what your travels will cost," he clarified. "For instance, suppose it amounts to about $10,000 annually. This expenditure needs to be included alongside your regular expenses. Afterward, assess these figures. Are your incoming funds surpassing your outgoing ones?

Sell Your Home

Lastly, for baby boomers looking to catch up financially, Melanie Musson, a financial expert, has some insights. InsuranceProviders , recommended they consider selling their home if it proves beneficial.

"If they relocate to a place where heating, cooling, and maintenance expenses are lower, and they manage to save money from both these reduced costs and the equity gained upon selling their current home, they will likely feel less financially stressed," she explained.

Ways to Enjoy Quality Family Time While Staying Within Your Financial Means

More family time, as 57% of boomers said they want, can be pricey. Taking grandkids places and enjoying a night out on the town can add up, but there are ways to spend quality time together without blowing through your budget.

Rather than splurging on costly getaways or pricy presents, concentrate on joint adventures," Diamond stated. "As an example, organize potluck meals instead of eating at restaurants or arrange low-cost yet memorable outings such as hikes or evenings filled with games.

Ways for Baby Boomers to Travel More Affordably

According to the Wealth Enhancement survey, 56% of retirees want to travel. For those on a tight fixed income, having extra money to do fun activities can be hard, but it’s all about being flexible.

You can achieve significant savings by keeping your travel arrangements as flexible as possible," Diamond stated. "Prices for flights and accommodations increase during weekends and holidays, whereas weekday and off-peak season offers can significantly reduce expenses.

Additional factors to keep in mind encompass "exchanging houses, utilizing credit card travel benefits, and opting for extended Airbnb accommodations," Diamond noted further. "Also, remember that senior discounts can frequently be found for both airfares and entrance fees at national parks."

Planning for retirement amid economic instability presents difficulties; however, factoring in inflation, taxes, market fluctuations, lifespan expectations, and allocating funds for your desired activities can help ensure your financial well-being.

As stated by Mangold, " Retirement isn't about fretting over each cent or scrutinizing every cost; instead, it's meant for relishing your life after work."

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This article originally appeared on WellnessInvestigator : How Boomers Want To Spend Their Retirements — And How They Can Make It Happen

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