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Can Baby Boomers Really Live On Less In Retirement?
Thinking about one’s future always stirs up varied emotions. For some, the prospect of planning brings about fear and worry because they have to focus on their family’s financial security. Some baby boomers feel that entering retirement can cause serious financial problems, and begin to wonder if they really can live on less in retirement?
The amount of money you spend during retirement depends on how you want to live your life during your retirement years. Some fortunate ones say they spend more money during their retirement and this could be due to the fact that they’re using their money to relax and enjoy their new, work-free lives. Some buy homes or travel or lavish their child and grand children. They are doing activities that they didn’t have time to do while they were still working.
Those folks who are forced to live on less in retirement are able to do so because they are spending less. Retirement definitely lowers some costs, like gas for commuting, lunches out, special work clothes and other costs that may be typical for a working person. As mentioned, however, the amount of money you spend as a retiree is really dependent on your lifestyle and, as a result, will vary from person to person.
Still others choose to relocate after retirement to an area that has a much lower cost of living; sometimes even to a foreign country. They are able to maintain a comfortable lifestyle while living on a lot less than they used to.
In order to accurately access your financial situation as a retiree, here are a few things to consider:
- Where are you going to live when you retire? Stay at home or move?
- Will you be alone or with your family?
- Do you need physical assistance?
- Would you like to try other lifestyles? Live in another country?
- Do you have investments?
- Do you have insurance?
- Are there many debts you have to settle?
- How much are you getting from Social Security?
- Do you want to leave an inheritance?
- Do you have children or grandchildren you’d like to help support?
For those who are planning their retirement, one tip would be to ensure that you maintain a solid investment that will benefit you when you retire. Logically, retirement is supposed to imply fewer expenses, but with the economic crisis as of late, this may change. Be sure that you are financially prepared for such a situation.In the end, how you life your life during retirement depends entirely on you, and your choices will determine whether or not you will be able to live on less during your future retirement. Make strategic financial decisions and have an idea of what you want your future retirement lifestyle to be now and you will be well on your way to living out your retirement dreams.
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Tags: Baby Boomers, cost of living, financial planning, live on less, retired, spending less
November 21st, 2009 at 5:14 pm
I think learning to live on less now will help out tremendously as we head into retirement. Also, keeping yourself relatively healthy will help alleviate some medical bills and getting your kids out of the house and on their own will help too! :)
Beverly Mahone´s last blog ..The Feet Don’t Lie
November 21st, 2009 at 5:41 pm
You know I am exploring the option of retiring on a cruise line when I get the money. http://rosiesboomerreview.com/2009/11/assisted-living-is-expensive-why-not-retire-on-a-cruise-ship/
But at this economic rate, my hubby and I have decided not to retire as long as our health holds up.
Never like the word retirement, prefer transition.
Thanks for this post
rosie´s last blog ..Breaking News, Seller Offers Refund On My Coin Purchase
February 6th, 2010 at 2:59 pm
Great article. I agree. Many people in the baby boomer generation must change their lifestyles after they retire. This is not easy for many. But as you point out, there are alternatives.
The recession is taking a toll on the baby boomer generation. I can say that because I am slightly older than that generation. But I don’t feel that old. And I have found a way to transition from corporate America.
Yes, many have seen their retirement savings hurt by the recession – the stock market crash and falling home prices. But I feel that most who have been hurt will recover.
Most are well educated, aggressive, and creative. Many have had successful careers. They are also accustomed to giving – giving to help others.
Just because some baby boomers don’t have enough to live on as they consider retirement, doesn’t mean that they must suffer in retirement. Many will find the work from home, internet network marketing industry as a great alternative for utilizing their abilities and helping others. I know they will succeed.
Scott Hubbard´s last blog ..Baby Boomers Concerns Keep Them Working