These stats and more were published in survey results by the Insured Retirement Institute (IRI). Perhaps the most alarming result in their key findings was the number of Boomers without retirement savings. That number? Thirty-five million.
Experts interviewed proposed various ways retirees can and should begin to prepare for the future. Their approaches fell into one of the two categories below.
Downsize and secure retirement accounts on all fronts
Seeing as so many are without retirement savings, it’s warranted that sufficient retirement funds ranked high as a matter of concern for those about to retire.
Subsequently, one of the conclusions drawn from the IRI survey discussed the need to develop strategies for those who have no savings.
Baby boomers who own businesses often use retirement as the marker for when to sell their business. And an approaching retirement date could be the perfect time to do so. But US Dental Transitions, a firm that helps with selling dental practices, says, “It’s not as simple as throwing up a ‘for sale’ sign, finding a buyer, and closing the deal. There are the complexities of the legal paperwork to consider, as well as looking after the best interests of your staff and patients.”
From basic questions such as, how to sell my dental practice, to more advanced ones, getting a trusted second opinion is key to securing the right amount for a business. Their advice for those who are looking to sell their business is to find a broker who can do the following:
- Market your practice to a pool of qualified buyers
- Qualify prospective buyers
- Show your practice only to qualified candidates
- Manage the purchase offer process
- Negotiate the terms and conditions of the sale on your behalf (price, AR, change of control, work back period, etc.)
- Facilitate the closing
- Deliver your check
Other strategies for shoring up a lacking retirement fund include deferring retirement for as long as possible. Another option would be taking on a job with a lighter work load and fewer hours for those who are still physically capable. Working for another 5 to 8 years after age 65 could help to ease the financial strain on limited savings.
Downsizing also plays a large role in cutting costs and making one’s savings last for the long haul. Bankrate.com says, “Downsizing from a $250,000 house to one that costs $150,000 could on average increase yearly income by $3,000 and reduce annual expenses by $3,250, saving the homeowner $6,250 a year.”
Individuals with a moderate amount saved can still benefit from professional advice to ensure their savings are sufficient for a comfortable retirement.
Pay more attention to one’s health
CBS News reported that while Americans are worried about finances prior to retirement. That worry changes to concern over their health once they enter their retirement years. But more often than not, their fears are intertwined with their concern over the financial cost of health care.
Respondents to a survey by Merrill Lynch/Age Wave made the following statements:
- I will make healthier choices now to save money later (91 percent)
- I will use more generic medications and health supplies (91 percent).
- I will reevaluate my health insurance plan (83 percent).
- I will increase my use of free or low-cost community health programs (77 percent).
- I will buy insurance (Medigap or Medicare Advantage plan) for out-of-pocket health expenses (74 percent).
The AARP provides a rundown of what retirees can expect to pay for healthcare during retirement. The figures show that a 65-year-old couple will need $240,000 to cover future medical costs. This amount does not include long-term care costs, such as nursing homes or assisted living facilities.
Staying healthy then is perhaps the greatest cost saver and a boon to your retirement fund. Even small improvements to better one’s health can make a large difference. And smaller changes may be more effective than larger ones. As they can help increase the likelihood that a person sticks with the overall goal.
So paying attention to one’s health now should be one of the priorities of those facing retirement. Placing a priority on eating well and exercising will improve one’s overall health while also benefiting one’ssavings in the long run.