Retirement Planning for the Baby Boomer Generation
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The baby boomer generation has had an enormous effect on all aspects of life since they were born. This will be no different in their retirement years. Demographics project that they will live longer be healthier and be more active than previous generations.
One of the most telling results is the fact that many expect to work much longer than their parents whether it is starting a new career, volunteering, continuing in their present position, or starting a business. With the number of baby boomers near 76 million or so all heading for retirement it is important for boomers of all walks of life to begin planning for what lies ahead.
Right now statistics show that we are living longer but that entails higher health care costs. If you are in your 50s over getting close you may want to investigate long-term care insurance. This insurance coverage can help defray the cost of long-term care in a nursing home or at home care.
You'll also need to look at the cost of regular health insurance and figure that into your retirement budget. It will not be cheap as insurance companies experience for our age group is much higher and therefore the premiums are much higher also. If you're planning to retire early you'll need to take into account COBRA coverage and or your own personal coverage.
Once you reach your government retirement age of some or between 65 and 67 he will then fall under the Medicare plan and will need to plan for the costs involved as a Medicare recipient. The best thing is to do your homework now so as you're not surprised down the road.
Now it's also time to decrease your debts. When you retire your income will more than likely be somewhat less than you are used to living on now. By eliminating debt you well help to ensure that the money will be receiving from pensions, and Social Security, 401(k), and your IRA will be sufficient to cover your living expenses. It would be wise to sit down and figure out what you want to buy or do during retirement and if you have the funds to accomplish those goals.
Roast is a big concern also. Are you planning to stay where you are at our move to a more benign climate. Some areas you need to do research on are real estate taxes, housing costs in general cost of living in the area that you would be moving to as compared to where you are at now.
You will also want to consolidate retirement accounts as much as possible. Many boomers over the course of their careers have switched jobs a number of times it may have retirement accounts with different companies as they have moved along in their careers. If this is you rolling over any 401(k)s or 403 B's into a single IRA will make it easier to manage your money. Remember though that you will be charged a tax penalty of 10% for any funds withdrawn prior to the age of 59 and a half. This would also be a good time to make sure your beneficiary forms are up to date.
Visit your lawyer and update your will or trust, write up a durable power of attorney to take care of things if you become incapacitated. It is also good idea to get all of your policy numbers and contact information together in one place so that anyone who needs to find out information if you are unable to do it yourself will have a easy time of finding everything.
Now that you have your plan altogether it is wise to revisit once a year or so to make sure that it's anything that has changed can be taken care of and is also a good idea to meet with your beneficiaries and errors and the executor of your Will to make sure everyone is up to speed. This will also be a good time to make sure the retirement plan will meet your needs as time goes by.
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