Baby boomers are often seen as the last generation to truly enjoy a good financial situation. After all, according to multiple reports, those over 55 control 70% of household wealth in the US.
However, the sad reality is that there are people of all ages, including boomers, who find themselves without financial security or a decent source of retirement income. While most boomers can rely on Social Security benefits, even maximum benefits are not enough for the average person to live completely, and the solvency of the trust fund is questionable at best.
GOBankingRates asked financial experts to weigh in on what boomers facing or beginning to retire without savings should do immediately.
Perhaps the first step when facing financial stress, according to RJ Weiss, certified financial planner (CFP) and CEO of The Ways to Wealth, is to change your attitude. He said it’s important not to dwell on past financial decisions. Instead, focus on taking practical steps to improve your current situation and your retirement account balances.
“Avoid blaming yourself and start with a positive outlook, knowing that incremental improvements can make a significant difference,” he said.
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Next, Weiss suggested that you take a very thorough look at your current finances, including understanding your total income (Social Security benefits, any part-time jobs, etc.) and all expenses.
“Honesty is very important here. Facing your financial reality, including any debt, is the first step toward improvement,” Weiss said.
Based on your financial assessment, set realistic and achievable monthly savings goals based on what you can do this month, Weiss said. This could mean cutting out unnecessary expenses or finding small ways to increase your income.
“Focus on what you can accomplish this month and build from there,” he said. “In the long term, some very difficult decisions need to be made, but I find it helpful to first have a good idea of where you are before jumping to conclusions.”
David Fritch, CPA, financial advisor and estate planning attorney at Fritch Law, recommended maximizing your Social Security benefits by delaying them as long as possible. Whether that means waiting until full retirement age or even until age 70, the longer you wait, the greater your benefit.