Baby Boomers - adults born between 1946 and 1964 - are famous for their frugality. Baby Boomers were raised by Greatest Generation parents to think that another Great Depression was around the corner. Yet, growing up in 20th Century, America provided unprecedented economic security and opportunities. The frugal, money-saving mindset of the Baby Boomers enabled them to create a very stable retirement plan as they aged into their golden years.
In fact, according to this "Generations Ahead Study" conducted by Allianz Life Insurance, the majority of retirees stated they felt financially prepared as they continued to put more money away rather than spend it on themselves. Encouraging baby-boomers to transition from being a saver into being a spender in retirement is difficult. The fear of over spending their retirement nest egg is a valid concern especially considering people are living longer than ever before.
But retirement is supposed to be the ideal period of an individual's life. Spending your Golden Years stressing out over money you've worked so hard to save is obviously counterproductive. America' economy is triggered by spending and spending a little money on yourself is nothing to be ashamed of. Retirees who find the right balance between saving and spending lead by example. Living comfortably while also enjoying the fruits of your labor encourages younger generations to better prepare for their own financial future.
Retirement Balance: How to Have Fun On A Fixed Income
As long as your fixed expenses are covered, you should really feel good about spending just a little more on yourself whenever you hit retirement age. Existing expenses for retirees frequently include matters like insurance, utilities, and mortgage payments if they still have them. These costs should be about 50 percent of one's total income and should be paid using guaranteed income such as Social Security or pension payouts. In the event that it is possible to get these expenses down below 50%, all the better. However, do not make the error of doing something like down-sizing your home because sometimes the costs of such a decision outweigh the advantages.
There's no reason to abandon those good saving habits so long as enables you to do more for yourself later. Spending less on little things you do from day to day can mean that you do have more money when you go on vacation, buy presents for loved ones, or wish to treat yourself.
If you are in Sacramento, CA Yreka, CA, or Minneapolis, MN and interested in learning about how Life Insurance we can help you secure more money for your retirement, please let us contact us.