The youngest Baby Boomers are turning 53 this year. While many have reached retirement age, the age of retirement has risen from 61 to 63 and up to 65 in the New England states, since 2015. Why are some Boomer waiting to leave the workforce?
Those still working say they don’t expect to retire until age 66 or older. And one in 10 say they’ll never retire. Some of the reasons include:
Health Care and Insurance — a top concern for this generation. While Medicare starts at 65, not all Boomers understand the details of Medicare plans and benefits to which they might be entitled.
Financial Preparedness — According to a study of Boomers by GoBankingRates, about 30 of respondents say they have no retirement savings. Only 55% have some retirement savings and of those, 42% have less than $100,000, leaving about half of all retirees to live off of their Social Security benefits. The economic downturn of 2008-2009 also impacted many of their pension plans and investments.
Keeping their Minds Sharp — Many Boomers say that working and completing projects gives them a sense of purpose and keeps them thinking.
Whatever the reasons for working until a certain age, Boomers have the longest life expectancy in history. This makes it important for them to stay healthy and financially comfortable. Here are some steps to help maximize their lives before and after retirement:
- Making the Transition: Planning is vital. If you want to keep working, ask whether your employer will allow you to work part-time or on a flexible schedule. You might want to take up other part-time or freelance work, or start your own business. Doing your research can give you a clear picture of your choices, and help you to plan for the lifestyle of your choice.
- Financial Success: Based on your desired retirement lifestyle, anticipate your financial realities and plan accordingly. You might find that staying in the workplace longer will contribute to your financial comfort and help to build your savings.
- Information is Power: Work smarter, not harder. Know the pros and cons of drawing your Social Security benefits early (you might be subject to an earnings limit), and all the ways that income might impact your SSI benefits, or vice-versa.
- Prioritizing Health: Boomers have the longest life expectancy of any generation in history, so staying healthy and active is especially important. Many forms of exercise are beneficial, and walking is great not only for fitness but for bone strength and overall mental and physical wellness.
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