The nation’s largest generation is facing a decision of what to do with their retirement future. Many of those are at risk financially for they are weighed down by debt. There is no question that they need to work off this debt before they retire otherwise they could easily deplete their nest egg significantly. Many financial planners are urging these Baby Boomers to rehearse retirement while they’re still working. At least when you’re practicing retirement you can afford to make mistakes. Also a gradual transition into it is a smart plan of action. There are three key points of what to do for planning your retirement.
- Know your expenses. Many people do not understand what expenses they really have while they are working. It is important to list everything that is an expense over a period of a year. This will take into consideration bills that are paid quarterly as well as once a year.
- Know your assets. Whatever money you have set aside for retirement in the form of pensions, IRAs, as well as Social Security, you need to know whether or not you have saved enough to cover your expenses. According to statistics, nearly half or 44.3%, of the Boomers are at risk of not having enough benefits to even afford the basic retirement expenditures. There are so many cases today of workers that retire as soon as they are able to start receiving Social Security benefits because they believe they will have adequate financial resources, but it turns out that they end up spending down their income too quickly for they underestimate their life expectancy.
- Know your emotional needs. You need to be able to replace the social life that you’ve once had at work. So, knowing what to do differently when you retire is important. Whether it is taking up a hobby or sport or volunteering for an organization or hospital, make it something that will fill your day and make you productive and active.
- Redefine retirement. Instead of opting for full retirement, consider lessening your work week or making a change in a career. AARP just recently launched a new social network, Work Reimagined, which helps older workers find jobs.
Once you’ve considered the pros and cons of retirement needs and goals, it may just come down to just making some small changes and compromises, such as downsizing from a large home to a smaller apartment in a less expensive town. But, ideally it would be best to discuss your retirement future with a financial advisor and ask him or her how you can create a retirement income strategy and what you can do to ensure you don’t outlive your savings. However, for those of you who prefer to handle your own retirement portfolio, continue to set aside as much savings as your budget will allow to help build up your nest egg and to continue to diminish whatever debt you may have.
Here at Donald J. Medeiros Insurance Agency our goal is to try to help our viewers by suggesting solutions for all insurance needs. By no means can we address each reader’s specific concerns in every incident. So, we strongly advise to check with an insurance representative to address your specific needs. However, you can also contact us for any questions or concerns and we will be happy to help you. We are able to offer a complete line of personal & commercial insurance products for all of Massachusetts, Rhode Island and New Hampshire.
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Donald J. Medeiros Insurance Agency WebsiteFiled Under: Money Lessons | Tagged With: AARP, Donald J. Medeiros Insurance Agency, financial advisor, long term disability, retirement, retirement benefits