More baby boomers (the large generation born between 1946 and 1964) will be retiring soon. Or will they? A survey from AARP showed that 40% of baby boomers will work until they die. Why is that?
Many Americans are not in the position to retire even if they are of retirement age. If you are in the shadows of retirement (within 5 years of retirement) here are two things to consider:
First, are you able to retire? Here’s a quick calculation to determine if you are able to retire or if you will need to delay retirement.
Determine how much your living expenses are in a month (utilities, mortgage/rent, auto expenses, clothing, debt payments, groceries, personal care, entertainment, etc.). take that number and multiply it by 12. The result is what it costs for you to live annually. Now take that number and multiply it by 15 and by 20. This is obviously the range of dollars that it will take you to live over the next 15 to 20 years. According to the Social Security Administration, a man who reaches the age of 65, on average, can expect to live to 83. A woman who reaches 65, on average, can expect to live to 87.
If the funds in your retirement accounts do not match the total you just calculated, then you aren’t ready to retire. My suggestion is to work with a financial planner to develop a plan to aggressively save for retirement.
Secondly, how much debt are you currently holding? Debt is a major stumbling block to retiring and causes many Americans to work well into their retirement years. If you are mired in debt and you’re close to retirement, it is in your best interest to aggressively work toward retiring as much debt as you possibly can before you retire. This will allow you to live more comfortably in your retirement years.
The key word here is ‘aggressive’ if you are in the shadows of retirement. Aggressively retire debt and aggressively invest in your retirement! If you can do these two things, you can enjoy your retirement years instead of being obligated to work through them.