It seems that many younger baby boomers, those who are still under retirement age, are more and more concerned about having a comfortable golden age. Unlike previous generations, they have not been able to rely upon their retirement accounts or company retirement plans.
What Are Some Retirement Concerns that Boomers Have?
Many companies have terminated long time employees in order to get cheaper labor. Other companies have reduced or eliminated retirement benefits.
Today's boomers are aware that social security benefits will not be enough to provide a comfortable retirement either. This benefit was only meant to supplement other income or savings. People who have to depend upon this income are likely to have to make a lot of sacrifices in order to pay bills.
Medicare benefits may not be enough to provide enough coverage for health costs. The original plan still has a lot of deductibles, copays, and limits. So some additional supplemental insurance will be needed. In addition, Medicare does not cover long term care. So people are concerned about the cost of nursing care when they are older.
Recent economic woes have reduced the value of many retirement savings accounts. The stock market is down. Besides that, banks are paying very low interest on savings accounts or CDs.
Other costs have risen, and so many boomers have not been able to sock away as much money for retirement as they planned to.
But we boomers are a smart, flexible, and hardy lot. And it is up to us to consider some solutions to our current worries.
What, Me Retire?
One factor in boomers favor is the fact that our generation can expect to live longer and healthier lives than people could a few years ago. Because of this, many boomers plan to extend their working years. Some do plan to retire from their current job, but plan to supplement their income with part-time or contract work after that. Others figure that traditional retirement age is the perfect time to start that small business they always dreamed of. So for many baby boomers, retirement will not be the end of work. It will just be the end of the first stage of work.
Some boomers are getting an early start by working at a moonlighting business. Instead of investing in traditional savings accounts, they are investing in themselves.
Financial Planing For Retirement
Boomers are also reevaluating their financial planning so they be ready for retirement. Since savings and investments may be lower than planned, they are trying to figure out how to budget for more savings by cutting their lifestyles now. They may also be considering different financial products to help cover long term needs.
Life insurance and annuity products may help provide income or help them plan to transfer an estate. There are a variety of different products to consider.
Long term care insurance can help pay for nursing costs if they need it in the future. Since Medicare does not cover long term care, and since a large percentage of people will need some form of care in the future, this is a valid concern.
Frugal is in fashion and boomers are getting on board. Many have decided to downsize or adjust their lifestyles so current bills are reduced while retirement savings accounts are supplemented.
Baby Boomers and Retirement
Visit us to learn how to save on bills this month!
Also get more information about over 50 jobs.
No comments:
Post a Comment