Ah, the advantages of retirement! More time to spend with loved ones, an end to work-related stress, and maybe even a sandy beach thrown into the mix. If you’re in the baby boomer generation, these things may be on the forefront of your mind. However, with all the wonderful things to look forward to, you may find that you’ve acquired a blind spot to the disadvantages facing baby boomers in retirement. If you’re a baby boomer—or have loved ones who fit into this category—now is the time to understand this important generation’s path to and through retirement.
Dollars and Debt
It’s a well-known fact that the arrival of baby boomers boosted our post-war economy. Despite how much this generation has contributed to American financial success, its savings may not reflect the same level of prosperity. In fact, as retirement comes closer—or even arrives—countless baby boomers must admit that they don’t have the savings they need to enjoy their golden years in comfort.
So, why is phenomenon so prevalent? One word: debt. As baby boomers accrue more and more money owed to other parties, this leaves less capital available for their future retirements. Even worse, it means that they cannot grow their wealth, preventing it from swelling into a proper nest egg.
The Harmful Cost of Healthcare
No matter how healthy you are, at one point or another, we all need to take a visit to the doctor’s office. Well, this need increases over time. As we get older, we find ourselves subject to heart issues, brittle bones, and even greater susceptibility to certain illnesses. Whether or not you have insurance, the hospital bill can hit you hard.
Even worse, the cost of healthcare can keep baby boomers from retiring on time. It creates a vicious cycle of saving and spending, preventing people from keeping the money in the bank. As time goes by—and more illnesses or ailments occur—baby boomers will find it difficult to work and difficult to save money, too.
The Problems Caused By Not Saving Sooner
When it comes time to plan for your retirement, you can’t put it off. Unfortunately, about 33 percent of baby boomers can’t count a single cent in retirement savings to their names by the time they have reached the age of 58. This lack of funding stands as one of the biggest disadvantages facing baby boomers in retirement.
Many people forget that saving for retirement ought to be viewed as a long game—not a short one. If you think that you can save all of your retirement funding in the decade prior to the big event, you’ll most likely end up in a precarious position.
How bad could it get? A number of baby boomers have found that they can only afford a partial retirement. Once the money runs out, they either have to re-join the job force—at a huge disadvantage to some—or ask for help from family. Though there’s nothing shameful about working hard to provide for yourself—or requesting assistance from loved ones—this process can bring immense stress to those who deserve to relax instead.
With the disadvantages facing baby boomers in retirement, the future may feel frightening. However, for those still working until retirement, there’s time to catch up. Not only should you save a portion of each paycheck and spend frugally, but you also ought to consider making investments that will grow with the stock market, while not being subjected to stock market losses.
At Ty J. Young Inc., we can help people from all generations grow their savings—money-protected. Give us a call at 877-912-1919 to begin. We hope to help you find a clearer plan to retirement, too, so continue reading our blog here.