The numbers of baby boomers and retirements have increased to such a great extent that coping with them has become rather challenging. Due to the significant growth of the baby boomer generation, the people of today have become more and more concerned about their retirement.
At one time, people were rarely concerned about money when they were nearing retirement. They would instead begin spending their salary and bonus checks on luxury vacations if they were close to retiring.
These days, the boomer generation has become more concerned about whether they will have enough money to live a comfortable life once their work-life has ended. Unlike previous generations, the company retirement plans or retirement accounts do not seem to be as reliable, which is the reason why even younger baby boomers have begun thinking about their life after work.
– One of the major retirement concerns is that many companies are hiring cheaper labor and terminating long time employees. Retirement benefits have been eliminated or reduced by other companies. Therefore, there is a fear that they might get terminated or not receive sufficient retirement benefits.
– The baby boomers of today are aware that they might not get to live comfortably after retiring if they simply depend on social security benefits. They fear that they will have to sacrifice a lot after retirement to bear their daily expenditures.
– The costs of healthcare have increased so much that even Medicare benefits cannot cover retirees. Furthermore, long term healthcare is also not covered by Medicare. Thus, boomers are concerned how they will bear the costs if they ever fall seriously ill after retirement.
– The value of numerous retirement savings accounts has been reduced due to recent economic woes. Even the stock market is headed in a downward spiral. And the high interest rates that were once paid on CDs or savings accounts by banks have also decreased.
Retirement Financial Planning
Many baby boomers fail at saving money due to the lack of proper financial planning. However, appropriate financial planning can actually prepare baby boomers for their retirement and eliminate these concerns they have about retiring. There are several ways that baby boomers can manage to save money for their retirement.
– Continue earning an income even after retiring if they invest in annuity products and life insurance at the right time.
– The after-retirement medical costs will be covered if they invest in long term healthcare insurance.
– Supplement retirement savings accounts and manage to pay bills after retirement by adjusting or downsizing their present lifestyle.
The increasing number of baby boomers and retirement concerns has left people worried about retiring; however, with proper financial planning, they can ensure a comfortable life once they retire.