8 Moves To Make Now If You’re a Boomer Without Retirement Savings
Baby boomers are often viewed as the last generation to truly have a good financial situation handed to them. After all, according to multiple reports, those over 55 control 70% of the household wealth in the U.S.
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However, the sad reality is that there are people of every age, including boomers, who find themselves without financial security or a decent source of income for retirement. While most boomers can rely on Social Security benefits, even the maximum benefits are not enough for the average person to live on completely, and the trust fund’s solvency is questionable at best.
GOBankingRates asked financial experts to weigh in on what boomers facing or starting retirement without savings should do immediately.
Shift Your Attitude
Perhaps the first step when you’re facing financial stress, according to R.J. Weiss, certified financial planner (CFP) and CEO of The Ways to Wealth, is to shift your attitude. He said it’s important not to dwell on past financial decisions. Instead, focus on taking practical steps to improve your current situation and your retirement account balances.
“Avoid self-blame and start with a positive outlook, knowing that incremental improvements can make a significant difference,” he said.
Take a Comprehensive Look
Then, Weiss suggested you take a very comprehensive look at your current finances, including understanding your total income — Social Security benefits, any part-time work, etc. — and all expenses.
“Honesty is very important here. Facing your financial reality, including any debt, is the first step toward improvement,” Weiss said.
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Set Realistic Goals
Based on your financial evaluation, set realistic and attainable monthly savings goals based on what you can do this month, Weiss said. This could mean cutting unnecessary expenses or finding small ways to increase your income.
“Focus on what you can achieve this month and build from there,” he said. “Long term, some very difficult decisions need to be made, but I find it helpful first to simply just get a good idea of where you’re at, before jumping to conclusions.”
Maximize Social Security
David Fritch, a certified public accountant (CPA), financial advisor and estate planning attorney with Fritch Law, recommended maximizing your Social Security benefits by delaying them as long as possible. Whether that means waiting until full retirement age or even until age 70, the longer you wait, the higher your benefit.
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