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:

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The Baby Boomer generation is on the move… this time from rags to riches to rags. How in earth did we get there? Fact: Many Baby Boomers solely counted on retirement accounts to fund their golden years. In the last quarter those same retirement accounts dropped 50% of their value. What is left? Working longer or taking a new approach and working smarter.

The Baby Boomer generation is finding challenges that they never thought they would and are going from rags to riches to rags again.

Retirement accounts over half full last quarter – Great! Recently Boomer Retirement accounts have lost 50% of their value this quarter – Now what do we do!

Whew! How did I get there… let me bring you up to speed. This generation is becoming one of the fastest growing segments of our population which will put a tremendous strain on Social Security and any retirement system. At the height of retirement there will be fewer workers contributing to those programs then the actual number of Boomers drawing from it.

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