Baby Boomers Turn 65: How Are They Planning for the Future?

Boomers

It’s said that history repeats itself. Events with similar patterns cycle through world history. However, who knows if history will decide to repeat the great Baby Boom after WWII. The years after WWII from 1946 to 1964 are known as the ‘Baby Boom’ years. The whole nation was eager to settle down and have families after the turmoil of the war. Children born into those families, known as ‘Baby Boomers’, have now reached retirement age.

With such a large number of the population reaching 65, Alert1 became curious about what they had planned for their retirement. How are Boomers preparing their finances for retirement? What kind of lifestyle are they hoping to have after they retire? Are they planning on continuing to live independently? We’ve created a summary and infographic with all of the data we found.

Financial Planning

Smile Ease

Every year brings new challenges for Boomers looking to retire. Having enough money in the bank to support retirement is just one of them.

On average, the Baby Boomer generation has saved $38,000 of their paycheck for retirement, not including social security or pensions. Those that have qualified retirement plans averaged $88,000 saved. While this is not much to live off of, 48% of Boomers feel comfortable with their savings. The statistics below break down Baby Boomers’ true feelings about their savings:

  • 48% feel comfortable with their savings and are on par with their peers
  • 20% are ahead of the game and doing better than most
  • 14% are just getting started
  • 13% feel behind
  • 5% are lost and confused

Recent years have shown that Baby Boomers aren’t using traditional pensions anymore. As of now, 35% of Baby Boomers are relying on social security income for their retirement. However, relying on social security shouldn’t be the only method for income in retirement. Too many Baby Boomers are expectant that they will receive enough money to live off of from social security, which could jeopardize the system.

Boomers can ease the reliance on social security by saving money in different areas. Income can be divided between personal banking accounts, 401K accounts, and social security. The saying “don’t put all your eggs in one basket” rings true when it comes to saving for retirement.

While retirement accounts, savings, and social security are just two ways of supporting retirement, Boomers should consider looking into stocks, bonds, and capitals as other means to bring in money.

With this information, we know that Boomers are going to have to downsize areas of their lifestyle during retirement to stay within their new budget.

Lifestyle Planning

Lifestyle

The American population is living longer and staying active. Baby Boomers are no exception. Their generation is driven and ambitious.  Most Boomers don’t plan on moving out of their current home when they retire. The majority of Boomers, 54%, believe they will likely live out their lives in their current home. The statistics below give insight to how Boomers plan to spend the rest of their days:

  • 42% cycle between work & leisure
  • 17% never work for pay again
  • 16% work part time
  • 13% start their own business
  • 6% work full time
  • 6% other

As the Boomers age, they face new health challenges. With the help of their doctors, Boomers are creating health plans that will keep them active into their golden years. Most Boomers believe that an additional support system in the event of an emergency is a great idea. 79% of Boomers think medical alert systems are a great aid to living on their own. Yet only 13% of Boomers currently have a medical alert system.

Medical alert systems bring great peace of mind to Boomers looking to age-in-place while enjoying retirement. They’ll stay safe and protected while enjoying their active lifestyle and new freedom.

It’s not always easy deciding to retire. It can take some time getting used to a new lifestyle during the transition process.  Alert1 is here to offer all the support we can. We’re here to support the Baby Boomers every step of the way.

Baby Boomers

Interested in learning more? You might like our article on independent life after retirement.

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