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Retirement Trends for Baby Boomers

Retirement Trends for Baby Boomers

Surveys confirm Americans will face a number of retirement issues. It’s optimal to plan ahead so you can account for these benchmarks. But what about if you’re already retired – or what if retirement is just around the corner?

According to Pew Research, each day 10,000 additional baby boomers turn 65 years old. Since this trend is set to persist over a 19-year period, it’s certainly one that’s been redefining retirement. In fact, baby boomers will face many unique trends in their retirement years.

Let’s cover some of these trends below.

Pressing Boomer Retirement Trends

Longer life expectancy – According to data from the Social Security Administration, life expectancy is increasing. The data projects men who will turn 65 in 2030 can expect to live six years longer than those who reached 65 years of age in 1970.

Likewise, women who will turn 65 in 2030 are projected to see their life expectancy increase by four years from women who turned 65 in 1970. This means boomers will have to get more retirement savings to account for these years.

Better health – Another trend is increased quality of life, thanks to innovations in medical care and technology. The Urban Institute analyzed data from the University of Michigan Retirement and Health study. The findings showed adults aged 80 and older reporting fair or poor health declined from 43% in 1992 to 34% in 2012.

With good health, retirees have less out-of-pocket medical costs, and they can continue working for longer periods of time. However, this trend may be reversing – the Urban Institute noted the proportion of adults aged 51-54 reporting fair or poor health increased from 17% in 1992 to 22% in 2012. It may be due to a rise in incidence of diabetes.

Greater debt – Increasingly, baby boomers are saddled with debt as they enter their retirement years. Data from the University of Michigan study showed the representation of adults aged 65 and older with debt rose from 30% in 1994 to 44% in 2014. Likewise, 24% of older adults are making mortgage payments in retirement, an increase from 16% in 1998.

In 2012, the median debt amount owed by older adults was $24,500. As these figures show, retirement monies will have to be allocated toward debt repayment instead of living expenses or other areas.

Longer employment - Many boomers prefer to keep working in their retirement years. Bureau of Labor Statistics data shows that men aged 62-64 looking for work or working rose from 45% in 1994 to 56% in 2014. Likewise, the representation of women aged 62-64 who are working or looking for work increased from 33% in 1994 to 45% in 2014.

These longer periods of employment allow workers to stock away more money into their 401(k) retirement plans or just build up retirement savings in general.

Need Help with Retirement Planning?

Baby boomers have great opportunities to enjoy their retirement years. The best way to secure your future is to plan now. Any solid planning begins with education, for which we invite you to use our SafeMoney.com resources.

When you're ready for personal attention, SafeMoney.com can help you. Use our Find a Licensed Advisor section to connect directly with an independent financial professional, and to request a personal strategy session to discuss your needs and goals. And should you have any questions or concerns, call 877.476.9723.

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