Baby Boomers, the American generation born between 1946 – 1964, are retiring. In fact, a lot of Baby Boomers retire every day; however, research has found that, as a group, they are not very well prepared for their retirement. They don’t have the funds they need to lead peaceful, happy and content lives once they retire. Forget about the luxuries, many finance experts believe that Baby Boomers will be forced to give up on items such as roomy houses, newer cars and other things which they have grown accustomed to. Sadly, many Boomers will survive with just the basic amenities.
Here’s an infographic that lays out the facts on Baby Boomer retirement.
Where Did Baby Boomers Go Wrong?
This is one of the most interesting analysis of what actually went wrong for Baby Boomers and why they cannot enjoy a financially stress-free retirement.
They Did Not Invest Wisely
Experts believe that perhaps the most common factor that put Baby Boomers in this dire situation is that they failed to make wise investments. They either believed friends or invested without carrying out apt research. Baby Boomers needed the right portfolio allocation, but instead many of them either did not invest much at all or invested in the wrong entities.
Secondly, Baby Boomers did not fully plan for their retirement. While Baby Boomers spent a lot on their kids’ education and supporting relatives, they failed to take the essential step of planning their retirement. The retirement funds which are highly popular these days were not very common one or two decades ago. The lack of awareness and availability impacted the Baby Boomer’s preparation for retirement.
Lastly, the other major hurdle Baby Boomers face is having to make monthly mortgage and home equity loan payments. The factors all add up and result in a large percentage of Baby Boomers not being able to use their pensions and superannuation funds to support their living post retiring.
What Can Baby Boomers Do Now to Find Money for Retirement?
Undeniably, Baby Boomers don’t have much time to make more money for retirement. , But, even now, this generation of people can improve their current situation. All they need is the right advice and an accurate evaluation of their current situation. This will allow them to understand where they stand and how they can improve their position. Baby Boomers need to make research-backed decisions which can help their financial situation without creating any further financial losses.
If you are also a Baby Boomer who is going to retire soon, it’s highly important that you prepare yourself well for that moment when you leave the workplace. There are a few new companies like Mason Finance offering the right set of advice to baby boomers that will enable them to strengthen their financial position as much as possible in retirement.