About 10,000 Baby Boomers have been retiring every day since the first group of those born between 1946 and 1964 began retiring in 2011.
What most Baby Boomers don’t realize is they will live longer than they expect, outlive their retirement savings and be unprepared for death.
We take a look at five retirement trends plus one bonus trend th
at Baby Boomers should consider:
1. Most Baby Boomers will end up working past age 65.
Financial incentives in the Social Security program to delay retirement and the impact of the Great Recession on retirement savings are keeping Baby Boomers working longer. An estimated 1 out of 3 Americans between the ages of 65 and 69 had part-time jobs in 2013.
2. Baby Boomers will rely on social media during retirement.
Staying in touch with friends and family will become increasingly important to Baby Boomers who find themselves with more free time. One of the trends in retirement they may not expect is divorce, which surged in recent years for those over the age of 50. This explains the huge popularity of the dating website targeting Baby Boomers called “Our Time.”
3. Medical costs will be more than expected.
Social Security and Medicare will not cover many expenses, including long-term care. Out-of-pocket medical costs could exceed $250,000 during the retirement years. Without a realistic plan, retirement savings will be depleted faster than expected.
4. Reverse mortgages will become more popular.
Baby Boomers increasingly will turn to their only other large asset — their homes — after they deplete their retirement savings. Reverse mortgages will become one of the trends in retirement that provide a way to continue covering monthly expenses and medical bills while aging in place. However, a reverse mortgage is a loan that must be repaid if the borrower moves or dies to prevent foreclosure.
5. End of life planning will either be ignored or celebrated.
Unsettled affairs make death more difficult, but retirement trends show many Baby Boomers often ignore this aspect of their financial planning. Yet, Baby Boomers who yearn to share their personal story or history are one of the reasons there are so many different burial types available today. The National Network of Cemeteries offers burial options that include in-ground grave burials and above-ground burials in a community or private mausoleum or columbarium or in a lawn crypt.
The Bonus Trend
The best way for Baby Boomers to enjoy their retirement years without depleting retirement savings is to stay healthy and active. Barbara Morris, author of “Boomers Can Really Put Old on Hold,” has been quoted as saying, “Retirement is a debilitating disease.” While she says it’s important to take time off to smell the roses, she also says “those roses could turn to daises, as in pushing up daisies.”