Defining Retirement for Baby Boomers
By Katie Bruno, MIMFA, CERTIFIED FINANCIAL PLANNER™ Professional
Who are the "Baby Boomers?"
In August of 1945, one of the most devastating global wars, World War II, was coming to an end and millions of soldiers were returning home from war. Not even 9 months later, the population in the United States began to rise rapidly. There were almost 80 million babies born between 1946 and 1964 who made up almost 40% of the nation’s population. We know them today as the "Baby Boomers."
According to Ivy Investments GenLink Program, more than 10,000 Baby Boomers are turning 65 each day, meaning they are preparing for and nearing retirement. It is extremely important to understand what this generation has experienced in order to know what they have to look forward to in retirement.
Changing the Game, Then and Now
Being raised by Traditionalist parents who strongly valued loyalty, sacrifice, and hard work, Boomers were taught that an incredible work ethic was necessary to succeed. They also entered the workforce in the 1970s at a time when jobs were scarce, thus introducing a competitive nature.
Baby Boomers are the generation that transformed the work week from 40 hours to 80 hours just to keep a job. In their lifetimes, they have experienced so much, including the first man on the moon, movements for civil and women’s rights, The Beatles, the oil embargo, and so much more. All of these life experiences have created an optimistic outlook and youthful attitude that is a guiding factor as many of them shift into retirement.
What Can We Expect from Baby Boomers in Retirement?
Boomers are staying active.
The “old” notion of retirement could be described as a time of aging. Perhaps, as a time to withdraw, slow down, and grow old in a rocking chair from your living room. But the Boomers have a whole new idea of retirement. In fact, 65% percent of Boomers that are age 65 have no intentions of retiring.1 Others are moving to part-time work, launching new careers and businesses, traveling, or volunteering. Retirement is creating a new sense of freedom for Boomers where they can finally begin to blossom.
We recommend sharing and discussing your personal vision for retirement with your spouse, your children, your loved ones - and your financial advisor. After all, the first step toward achieving your goals is defining them.
If you are a Boomer and considering retirement, the team at Morey & Quinn Wealth Partners can help you plan for what you would like to accomplish. We personalize your portfolio and tailor our wealth planning services to support your personal vision and risk tolerance.
Boomers are living longer.
The life expectancy of Baby Boomers ranges into the mid-80s with more than 25% of them passing the 90-year mark.2 The fact that Boomers are remaining active is thought to contribute to this longer lifespan. Yet, living longer will require adequate retirement savings to supplement reliable income.
One of the most important aspects of retirement planning is determining how to generate income once you stop working. If you are thinking about retirement in the near future, the team at Morey & Quinn Wealth Partners recommends considering the following priorities:
- creating a retirement budget,
- paying off debt, and
- maximizing contributions to your retirement accounts.
Boomers may be supporting both their adult children and aging parents.
One in three Boomers are supporting both a living parent and a dependent child.3 This creates a challenging position, regardless of whether it is financial in nature. Boomers spend an average of 25 hours each week providing support to their parent, whether it’s visiting, calling with medication reminders, or driving them to the grocery store. Additionally, more than 60% of Baby Boomers have provided financial assistance to their children in the last year.4
If you are a Boomer, you may be focusing on financial plans to support those you care about. At Morey & Quinn Wealth Partners, our goal is to make sure you have a full range of resources at your disposal. For example: making sure your assets are titled appropriately, or support for executing an estate plan.
Contact the Morey & Quinn Wealth Partners office in Omaha, Nebraska. We have the answers to help guide you to a well planned life.
Retirement Financial Planning Services:
- Retirement Income Planning
- Social Security Optimization
- Estate and Legacy Planning
- Tax Planning
- Distribution Strategies
- Healthcare Planning
Morey & Quinn Wealth Partners
Raymond James® LIFE WELL PLANNED.
1- Dowd, This Isn't Your Grandmother's Retirement
3- Parker & Patten, The Sandwich Generation: Rising Financial Burdens for Middle-Aged Americans
4- Ivy Investments GenLink Program
The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.
Any opinions are those of Katie Bruno, and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Investing involves risk and you may incur a profit or loss regardless of strategy selected.
Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.