Andrew Lisa
3 min read
The youngest baby boomers, born in 1964, are in their early 60s. The oldest born, in 1946, will soon celebrate their 80th birthdays. Millions of boomers are already retired and millions more soon will be.
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Most probably want enough money to travel, spoil their grandkids, leave an inheritance or pursue whatever else stirs their passions and adds value to their lives.
But that’s possible only for those who live within their means, which they can, if they follow these expert tips.
Early retirement is great, until the money runs out and you have to return to a workforce that may or may not have a place for you. Unretiring out of financial necessity — especially after years of late-life decline — is bad. But it’s also preventable.
The longer you keep adding to your retirement means, the easier it will be to live within them.
“When heading into retirement, we often encourage people to work for as long as possible, even part-time, to supplement their income,” said financial attorney Ashley Morgan. “The longer you have working income, the less you are using your Social Security or retirement funds to survive and can save more.”
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It’s always best to start budgeting and planning early, but if you haven’t yet analyzed your finances, crafted a budget and drawn up a strategy, now is the time.
“Even if retirement is just around the corner for you, it’s never too late to establish a financial plan that aligns with your retirement goals,” said Casey Brueske, CCUFC, community education development specialist at PenAir Credit Union. “You can still build wealth in a relatively short time by making the right moves.”
She suggested refining your budget with your spouse or family and looking for ways to cut spending. Food, she added, is a category many people overspend in — creating a meal plan can help.
“Finally, make sure to max out your contributions,” she said. “If you have a retirement plan at work, contribute enough to take full advantage of the match your company offers.”
Industry authorities like Fidelity counsel those approaching retirement to plan to spend 55% to 85% of their current income upon retiring. The number will vary for everyone, but most should spend their near-retirement years planning to scale back — and the wise ones will start implementing those plans before they exit their careers.
