Retirement Budget Guide for Baby Boomers (2024)

At this point, retirement could last for three decades or more. Without a strict retirement budget in place, you put yourself in danger of outliving your savings—an unfortunate reality that many seniors are facing currently.

Believe it or not, restricting yourself to a certain budget during retirement is not as inhibiting as it seems; it may even grant you a few freedoms that many do not get to enjoy. Furthermore, it can help make room for any emergency expenses that you might encounter along the way.

Setting a budget for retirement is not as simple as choosing an amount, and sticking to it. Here are three simple strategies to get you started with covering all the bases.

Never underestimate the power of being well-informed. After all, plans and decisions are more effective when they are supported by research and data. This is why you should make it a point to be updated about the trends, issues, and breakthroughs in the retirement world.

Perhaps, the most important advice we could give to retirees is this: anticipate the costs of long term care no matter how unnecessary it may seem, and plan for it as early as you can. Make room for it in your retirement budget because you do not want to be surprised when the care needs come.

The unfortunate truth is that people shy away from long term care coverage because of the costs that they have deemed too much for something they might not need. People go about the planning stages thinking that care needs are avoidable. However, the odds are not in anyone’s favor. As healthy as you are now, you are still at risk of needing long term care for accidents, health conditions, and even old age.

Without long term care coverage, you end up facing the service rates using the assets and savings that you have. Click the link to learn more about the consequences of not having coverage.

Older couples no longer need several bedrooms, especially after their kids have moved. The cost of maintaining a house that is built for more than two occupants can take a huge lump of your finances. Moreover, the utilities that come with a spacious place could add substantial figures to the prices you already have to pay. Even if your current house is paid off, moving into a smaller home can help free yourself from many expenses.

Be sure to find a neighborhood that is baby boomer-friendly. It is important to learn about the costs of care in the area and the other programs that cater to the older generations before you decide on a place. After all, the last position you want to be in is where you and your spouse live in a neighborhood of young couples with their toddlers and teens. It is better to surround yourself with people encountering the same challenges and issues.

Despite the many advantages that come with setting a budget, many still struggle to stick to it. According to a study done by the Employee Benefit Research Institute, 45.9% households spent more in the first two years of retirement than they did before it. Moreover, the recent report by the Insured Retirement Institute stated that 35 million baby boomers out of the 76 million still lack any retirement savings today. If you put the two data side-by-side, you can see just how worrisome the financial aspect of retirement is for many of the baby boom generation. This is why you should take matters into your own hands, and take all proactive measures in securing retirement finances.