Surveys have shown that as baby boomers approach the golden years of retirement many are, if not concerned, wondering how to approach their new life. Well, some planning ahead can go a long way.
There are clearly many things to consider in the planning process, but the following three seem to be on the top of the list:
Be financially prepared
It may not be obvious, but you would be surprised to know how many retirees fail to put their financial life together before they retire. Not having enough money to sustain a reasonable lifestyle can ruin the enjoyment of the golden years - or worse!
You may find that at the time you want to retire, or are forced to retire, the money is simply not there. So what do you do?
Hopefully you know well ahead of time that you are retiring. This will give you time to put together a financial retirement plan. If you have not done any financial planning before you would likely benefit from the help of a financial advisor. The best way to find one is to ask friends for recommendations or, ask your accountant, bank manager or broker for their insights.
Once you have an idea of your retirement financial shortcomings you can plan what to do about it.
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You may want to postpone retirement, if possible.
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Maybe only partially retire, while maintaining a part time job.
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You can make a total career change, taking a full time job doing what you have always wanted to do.
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Or you can start that new small business you have had on your
mind for years.
It is all depending on your situation, but if your retirement is less than five years away you can safely start planning now.
If you are going to retire in less than a year or next week, you need to hit the panic button and get started right now.
Be emotionally prepared
Without a sound financial foundation retirement is almost impossible. And without an emotional foundation it can become very difficult.
Many retirees have reported that when they retired from working life they all of a sudden felt worthless. They are no longer part of their peer group, they no longer participate and contribute to anything. A lifetime in business, different careers and other endeavors comes to an end with a feeling of loss. Loss of appreciation, loss of participation, loss of contribution and the list goes on. You loose your self respect, your initiative, your drive and all the other characteristics that made you successful.
Loss of self can, believe it or not, lead to depression and related physical illnesses.
Being aware of this is an important step towards a happy retirement.
Just be prepared
Preparing for what to do once you retire is vital, according to many retirees.
The best advise seems to be to have an interest, charity, hobby or the like, which started during your working life and is carried over into retirement. That way there is an continuation in part and a connection to things of importance to you. You may call it a "carry over interest".
If you do not have a "carry over interest" you can take with you into retirement you should seriously consider something that may work for you. Starting from scratch do not expect immediate success, but keep trying.
In other words, start early and do not give up or make excuses. According to reports, having something worthwhile to do is a very important part of a successful retirement. Making the effort will be well worth it!
A few years ago it seemed like retirement was a long ways off. We both had good jobs, a 401K, and felt like we had time to save enough to retire comfortably. How quickly time has passed. Both of our retirement funds have lost money and the future looks grim. We have decided needed a plan B that would continue to bring in money to supplement our savings. Instead of relying solely on social security and savings, we have decided to try our hand at network marketing. It took several tries to realize that not every network marketing opportunity provides the kind of security we are looking for. A lot of them only wanted to take our money and offered nothing but hot air in return.
Even though we are both computer “literate”, network marketing is a like entering a new job, and we realized we needed the support and help of a good, honest team to be a success. We have learned some really neat ways to market the five opportunities we have chosen. One of the first lessons we have learned is network marketing is just like any other job and requires hard work, time, and patience.
Unfortunately, most articles addressing baby boomer retirement overlook the financial realities of this generation – namely, that life, divorces and the economy have decimated 401K’s and home equities.
According to a June 24, 2008 report by the Center for Economic and Policy Research: The decline in home values has reduced the prospect of comfortable retirements for the majority of near retirees. “This extraordinary destruction of wealth will have tremendous implications for millions of families as they enter retirement,” wrote report co-author Dean Baker. “Coupled with a very low personal savings rate, this means that many people will only have Social Security and Medicare to rely on in their retirement.”
By some estimates, up to two-thirds of baby boomers will not have the financial resources to enjoy a retirement consistent with their current life style. They will have to work longer and settle for less. For them, retirement will mean learning how to stretch their dollars. They will also have to be open to making (sometimes dramatic) changes in their lives to achieve a “comfortable” retirement at a level supported by their income.
For the majority of baby boomers, retirement isn’t going to be like that of their parents. It will be more frugal, more innovative, and more active. But for a generation that wants to be the captain of their own time after grinding it out for so many years, they will find a way and continue to contribute to society.
Hallelujah! FINALLY, someone tells the truth about baby boomer retirement. Everywhere you look, writers dodge the fact that two thirds of us are broke. As you say, divorces, real estate decline and the economy have left many of us without savings at an age when there is little we can do about it. I believe we will not only have to postpone retirement and pray for recovery, but will have to consider VERY alternative lifestyles in order to survive, much less live in comfort. My one hope is that when we were young, many of us were hippies and learned to live on the cheap; sometimes in groups, on the VERY cheap. We need to dust off our memories and figure out some radical new plans.
Being financially prepared is more difficult these last few years since the recession. Many of us who thought were were in good shape found that some of our retirement money disappeared. Others are forced out of work due to company cutbacks. Still put yourself in the best situation that you can. One may have to readjust, but that is what life is. Keep your head up and focus on those things that you have a passion for. You may decide to link back with old friends or start a hobby. In fact, you may want to make money from your hobby to supplement your income back to where you wanted it to be.
Trust in yourself, your friends and family.
I appreciate your point about a prospective retiree being prepared for retirement. And especially what the newly retired person will do once retired. The press pays ever so much attention to financial preparation, but far too little to what the retired person will do after eating breakfast and reading the newspaper. Bill