4 Ways Middle Class Boomers Can Thrive in Retirement
Middle-class baby boomers face financial headwinds, but things could have been worse. They could have been part of the group that was freshly retired or soon-to-retire 15 years ago.
“One thing that is uniting this group is that they learned from the economic downturn in 2008,” said Suzanne Scullion, the founder of G.R.A.C.E. Financial Coaching. “They saw the people that were 10-15 years ahead of them lose out on what they thought was going to be a good-sized nest egg. This group is better prepared than people were 15 years ago.”
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They may be better prepared, but that doesn’t necessarily mean the generation born between 1946 and 1965 is fully prepared. Experts have plenty of tips for boomers on how to prosper during their retirement years.
Have a Plan Beyond Just ‘I Want To Travel’
How do you want your retirement to look? It may seem like an obvious question, but experts say many people don’t give it sufficient consideration. “Plan in detail” is advice that applies whether you envision adventuring through Europe or chilling locally with family and buying rounds of ice cream.
“A lot of my boomers want to spend time with the grandkids,” said Liz Hagg, a Ramsey preferred financial coach and the founder of LH Personal Financial Coaching. “You’ve got to plan for all of that. You have to know your numbers. You have to know everything you’re spending and how to track it.”
Scullion said many financial advisors fail to push back with clients on oversimplified retirement plans, like “I want to travel.”
“It’s important to prepare a fully-fledged retirement dream plan,” Scullion said. “Ninety-nine percent of the time, we’re not doing that. Doing that deep dive into what retirement really looks like is Stage One.”
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And Plan Beyond Your Life
Planning should involve more than figuring out recreation, of course. Making sure wills, trusts, power of attorney and other documentation is ready can help you thrive by giving you peace of mind, as well as reducing confusion and even conflict among your family members.
You may also need to face some uncomfortable questions, including whether or not you’re going to need help from loved ones or other sources.
“That’s hard for boomers,” Hagg said. “They grew up in a generation where money didn’t get talked about.”
She added that it’s crucial for both spouses to be fully involved in retirement planning, noting that in the generation boomers were raised in, that wasn’t always the case.
Have Boundaries With Your Adult Children
Gen Xers — born between 1966 and 1980 — aren’t the only ones struggling to support adult children. Boomers are often facing a similar challenge — and the associated barriers toward a fulfilling retirement.
“There are still a lot of boomers who are helping out their kids,” Hagg said. “They’re struggling, but they’re helping their kids — even if they can’t afford it. I have a lot of clients who have kids in their thirties, and they are still paying for their car insurance, their cell phones…”
She added her belief that sometimes it’s more helpful to not give money to adult children. They may seem to need financial support. It may help you feel like you’re still an important part of your adult child’s life. But you also may be doing more harm than good.
“When we do this, we’re sending them a message of ‘I don’t believe you can do this,'” Hagg said.
Beyond that, shelling out funds to support adult children means having less to realize your retirement dreams — along with less of your own space, if they are still living with you.
“You must be charging your child some sort of rent, Scullion said. “Even if they’re 42 years old. Even if it’s only $250 a month, it sets that boundary. It helps them understand that this isn’t a free ride. It’s hopefully a strong signal to take that next opportunity.”
Watch Out for Those Impulse Purchases
Impulse buying can drain retirement funds in a flash and become a barrier between you and a prosperous retirement.
Hagg advises at least a 24-hour wait before any large purchase. You can also try letting a few items pile up in your online shopping cart before pulling the trigger. This can help you gain perspective.
“Most impulse purchases are based on emotion,” Hagg said. “If you can step away from the emotion, you’ll have a clearer head.”
Scullion recommended going the opposite direction and focusing more on experiences than “stuff.” Ask yourself if you really need that clothing subscription service or other money-suckers. Literally making more room in your life can help you set the tone.
“A lot of soon-to-be retirees have a yard sale,” Scullion said. “Start by just deciding to clear out some space.”
Focus on Fulfillment
There’s the financial part of thriving in retirement, and there’s the mindset part.
Beyond focusing on experiences rather than possessions, Scullion also advises her clients to keep their minds fresh with old and new hobbies. Activities like classes in interesting topics, music, improv and others can go a long way toward making your retirement fulfilling.
“That and trying to stay healthy are the main things that come up,” Scullion said. “A lot of people don’t realize how much time they are going to have on their hands.”
She is also an enthusiastic fan of charitable donations, from gifts to a local animal shelter to helping people in need. You can donate your time, as well as your money.
“Hopefully that will help you with that sense of fulfillment,” she said.
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This article originally appeared on GOBankingRates.com: 4 Ways Middle Class Boomers Can Thrive in Retirement
