Retirement Planning Advice for Boomers

Written by , February 3, 2015

Retirement Planning Advice for BoomersVery large numbers of “baby boomers” (people born in the post-World War II baby boom from 1946 to 1964) have started reaching retirement age. Some of these individuals have accumulated large nest eggs, while others may be significantly underfunded.

Regardless of a person’s individual situation, the chances are good that virtually every person approaching retirement understands that they need to make sound financial decisions in order to put themselves in the best financial shape. Even with such a wide range of financial scenarios, there are still some retirement concepts that apply to virtually everyone.

Here is some retirement planning advice for baby boomers to consider.

  • Continue Prioritizing Your Saving. One of the problems plague many individuals in the path to retirement is that, even though they’re constantly bombarded with statistics and information about the importance of saving for retirement, they find reasons not to save.
    • Retirement saving should be one of the highest financial priorities for every person, regardless of their age, occupation, or other financial obligations. This is true even when you’re in your 50s or 60s. Don’t feel overwhelmed with the amount you need to save in order to reach your target nest egg. Save to the best of your abilities, and continue making sound financial decisions at every step along the way.
  • Maximize Your Social Security Benefits. Depending on your other retirement savings, your Social Security retirement benefits may or may not represent a significant portion of your retirement income. Regardless of your individual situation, there are various strategies you can implement to maximize the benefits you receive from the Social Security program.
    • For instance, for every year that you delay retirement from your full retirement age (up to Age 70), your monthly benefits amount will increase by 8%. If you’re in good health, then delaying your benefits for just a few years can result in receiving significantly more retirement income over the course of your retirement.
      If you’re married, then you may wish to consider the “file and suspend” strategy under which one spouse begins to take their benefits, which triggers their spouse’s eligibility for the Social Security spousal benefit, then the first spouse suspends their own benefits so that they can continue to receive the 8% deferral credit. This strategy can be complicated, however, so you may wish to consult with a financial expert to make sure you’re doing it correctly.
  • Reconsider Your Notion of Retirement. Depending on how much you’ve accumulated in retirement savings, you may want to reconsider what you can reasonably expect your retirement to look like. For example, if your retirement nest egg is small, then you might explore ways to downsize your lifestyle so that your living expenses
  • Similarly, you might continue working past your target retirement age. Even working at a part-time job can bring in much needed income, help to keep you active and healthy, and generally improve your overall quality of life.

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