The Biggest Retirement Planning Mistakes Boomers Made and How to Fix Them

Data from the Insured Retirement Institute (IRI) suggests that Baby Boomers are completely busted and busted up about their retirement prospects.  Boomers have made some big retirement planning mistakes — even beyond giving away their record collections.
The results of the IRI survey reveal that Boomers have an extremely dismal view of their future prospects.  But the news does not need to be entirely bad. Here are a few highlights — low lights — from the survey and what you can do to fix them. A secure retirement is still within reach.

Can’t Get No… Satisfaction…

The percentage of Baby Boomers who are satisfied with how their lives are going from an economic perspective has fallen to 43 percent, the lowest level since 2011.

In fact, boomers are less confident than they were five years ago about almost every aspect of retirement. The study finds that a “mere 22 percent believe they are doing a good job preparing financially for retirement, versus 41 percent in 2012.”

What You Can Do About It: Now is the time to take a detailed stock of your current resources and prioritize your needs and wants for the future.  There is no going back to save a little more, but there are definitely ways to move forward.

Assessing what you currently have and what you might need in the future can help you see some of the good decisions you have made and that you do have options for retirement — this can be very satisfying!

Ain’t No Mountain (Savings Account) High Enough

One of the biggest retirement planning mistakes Boomers have made is not saving enough money for retirement.  The IRI study found that a full 68% of Boomers who lack confidence in their retirement plans wish that they would have saved more and 67% wish that they had started saving earlier.
The study also found that Boomers are feeling even worse off than a few years ago.  Only 24 percent of Boomers are confident they will have enough savings to last throughout retirement, versus 36 percent in 2012.

What You Can Do About It: Maybe you haven’t saved enough, but you likely still have some really good options for a secure retirement.

  • Do you own your home?  If so, have you factored how your home equity can subsidize your retirement finances either now or at some point in the future?
  • Still feeling pretty good? Working a little longer — either part or full time can dramatically improve your long term finances.
  • Can you delay the start of Social Security to boost your monthly benefit?
  • Do you know what is important to you?  If you focus on priorities, cutting expenses doesn’t have to feel like a burden.

Use the retirement calculator to “try on” these strategies.  This easy to use tool takes retirement planning way beyond savings and assets.  This planner is designed to help everyone.  Assess which options will give you a secure retirement.

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