According to a 2024 AARP survey, 20% of Americans over the age of 50 have nothing saved for retirement, while 61% fear they won’t have enough money set aside to last throughout retirement. To complicate matters, concerns of a recession continue to loom and prices are still soaring, yet retirees are still looking forward to their golden years.
Be Aware: 6 Cash Flow Mistakes Boomers Are Making With Their Retirement Savings
Try This: 5 Unusual Ways To Make Extra Money That Actually Work
Recent data from Wealth Enhancement showed 77% of Americans have a positive outlook on retirement and many have clear goals to accomplish as retirees. The top three interests boomers have include relaxing, spending time with family and traveling, which can happen with strategic planning.
Know Your Monthly Income and Expenses
The No. 1 goal for boomers is to relax as much as possible after leaving the workforce — 64% chose this option in the survey. To help enjoy a stress free retirement, Eric Mangold, CWS, founder of Argosy Wealth Management, suggested knowing exactly how much money you have coming in and out each month.
“When you are preparing to retire, you will want to know how much money you will need to come to you every single month, so you can do the things that you want,” he explained. “Remember, retirement is about income.”
He added, “If you determine how much income is coming in through various sources, like Social Security, pensions, annuities, rental income, investments, etc., you will then want to determine how much is going to go out in expenses, such a groceries, utilities, healthcare, mortgage payment if you have one, taxes, etc.”
Find Out: The Money You Need To Save Monthly To Retire Comfortably in Every State
Budget Correctly
Another way to prepare is understanding your needs from your wants and not only budgeting for essentials.
According to Peter Diamond, a federally-licensed tax, accounting, real estate and structure and certified bankability expert, “Retirement isn’t just about quitting work. It’s about affording the life you actually want.”
He explained, “Too many retirees focus only on having enough to cover expenses, but real security means having discretionary income for the good stuff. Yes, you should separate your must-haves from your wants. Otherwise, budgeting is impossible. However, you shouldn’t just plan for the basics.”
Mangold also emphasized the importance of budgeting for everything you want to do in retirement.
“If travelling is a goal for you, you should create a number of how much your travel will cost,” he explained. “Let’s say for example it’s $10,000 per year. You will want to put that expense in with your other expenses. Then see how the numbers look. Do you have more money coming in than going out?”
Sell Your Home
Finally, for boomers who need to get financially caught up, Melanie Musson, a finance expert with InsuranceProviders, suggested selling their home if it makes sense.
“If they can move somewhere that costs less to heat, cool and maintain, and they can combine those savings with the equity they cash in on when selling their home, they can relax more easily without feeling the stress of financial pressure,” she said.
How To Have Family Time Without Going Over Budget
More family time, as 57% of boomers said they want, can be pricey. Taking grandkids places and enjoying a night out on the town can add up, but there are ways to spend quality time together without blowing through your budget.
“Instead of pricey vacations or expensive gifts, focus on shared experiences,” Diamond said. “For instance, you can host potluck dinners instead of dining out or plan activities that cost little but create lasting memories, like hiking or game nights.”
How Boomers Can Travel Cheaper
According to the Wealth Enhancement survey, 56% of retirees want to travel. For those on a tight fixed income, having extra money to do fun activities can be hard, but it’s all about being flexible.
“You can save big by being as flexible as possible with your travel plans,” Diamond said. “Flights and hotels spike on weekends and holidays, but midweek and off-season deals can slash costs.”
Other things to consider include “house swapping, credit card travel rewards and long-term Airbnb stays,” Diamond added. “And don’t forget that senior discounts often exist for flights and even national parks, too.”
Preparing for retirement, especially in economic uncertainty, poses challenges, but accounting for inflation, taxation, market volatility, longevity and budgeting for the cost of things you really want to do can set you up for success.
According to Mangold, “Retirement shouldn’t be about you stressing over every penny, every expense. It should be about enjoying your post-work life.”
More From GOBankingRates
- 6 Used Luxury SUVs That Are a Good Investment for Retirees
- 4 Low-Risk Ways To Build Your Savings in 2025
- I'm Retired and Regret Moving to Arizona -- Here's Why
- 7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month
This article originally appeared on GOBankingRates.com: How Boomers Want To Spend Their Retirements — And How They Can Make It Happen
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
