The Baby Boomers Retirement Blog

The economy is in a sorry state. Whether that is true where you live right now, or not, there is no doubt that financial markets are constantly rising and falling. The younger you are, the more able you will be to ride out the fluctuations, but youth is still no guarantee of a secure future. For people nearing retirement this can be nerve-wracking. Baby boomers, for example, are going to need their retirement savings and pensions sooner rather than later.

Know where you are – Before you can do anything about improving your retirement income, you need to have an idea of where you’re starting from. The more honest and thorough your assessment, the better. Add up all of your assets, income, bills and liabilities. If possible, sit down with a licensed financial planner to get the full picture. At this stage you don’t need to worry about the future, just focus on the present.

Know where you want to be – You need to have an accurate idea of how much money you will need during retirement. Use an online retirement calculator to help determine how much you will need. A good tip is to enter the variables with the worst- and best-case scenarios in mind. This will give you a range of how much you will need. Even the lower number, from the best-case, may surprise you.

Figure out the difference – Chances are you will see that there is a large gap between your present circumstances and future needs. The first time people go through this exercise they get discouraged. The difference between their current situation and what they’ll need for retirement paints a grim picture. Don’t let it get you down, instead let it motivate you to make what you need to live the retirement you deserve.

The bigger the pension gap, the more you will have to do to fill it. The options available to you decrease as you get older. Basically you can either save more, spend less, or make more. Each option has its pros and cons, but making more is the one that can have the most immediate impact.

When you go on a trip, you have a destination in mind. Your retirement is more important than a vacation, yet most people spend more time planning their getaways than how they will support themselves for the rest of their life.

About the author

Istvan Horvath is an author, blogger, former journalist, a passionate advocate of the Baby Boomers, and the founder of DigitalPensionCom. He is writing extensively about the Baby Boomers' retirement and pension issues. His Pension Report is an eye-opener. Visit his Baby Boomer Pension Blog for more articles. This article can be reprinted or republished provided the content and links are left intact, and the "about the author" section is included.