Retirement Saving at Any Age: Baby Boomers

Baby Boomers are thriving and living significantly longer than previous generations. That means you’ll have extra years to enjoy the life you’ve dreamed of in retirement. It also means you’ll have more years to account for when ensuring you have the necessary income. Even if it’s just a few years before you retire, you can take actions today to help you with your retirement income. 

1. Eliminate Your Mortgage

Continuing a mortgage payment in your retirement years can be a huge burden and drainon your budget and available cash flow. While some retirees might choose to leverage their mortgage equity to create additional income, this strategy doesn’t work for everyone.¹ Some Baby Boomers might find that choosing to pay off their mortgages can help them create the extra monthly income they need to support their retirement goals. 

2. Consider Downsizing Your Lifestyle

No more “keeping up with the Joneses.” As your family grew, you likely purchased a larger home and increased your lifestyle. Once children move out on their own, though, our lifestyles often no longer reflect our true daily needs. Baby Boomers might find that reassessing the size of their houses and number of belongings can help them cut unnecessary expenses from theirbudgets. By downsizing your home, you can lessen costs, such as monthly mortgage payments, lawn care expenses, utility bills, and more. It’s all about giving serious consideration to the lifestyle that suits you now. Downsizing can be a positive factor in helping you achieve your retirement goals.

3. Catch-Up On Contributions

Baby Boomers can boost their retirement incomes by making catch-up contributions totheir 401(k)s and IRAs. Investors can increase their annual 401(k) contributions by $6,000 fora total of up to $24,000. You can also increase your IRA payments by $1,000, up to $6,500.Not only will these increased payments help support your retirement lifestyle, but they alsoprovide another benefit: additional yearly tax deductions, which can help you save even moremoney.²

^{1 http://www.investopedia.com/articles/retirement/07/mortgages_in_retirement.asp
2 http://money.usnews.com/money/retirement/slideshows/10-ways-to-get-ready-for-retirement-after-age-50}