Living through decades of increasing prosperity has undoubtedly given baby boomers a lot of advantages, but they can also face several challenges. Today, many feel pressured into working past their normal retirement date, often because of the number of demands being made on their finances by their families. If they are unable to work, they can have concerns about outliving their retirement savings.
They may face the need to give emotional and financial support to their very elderly parents as well as their children, and sometimes their grandchildren too. All this while also working out how they can best provide for their own retirement planning and worrying whether they will have enough retirement income saved to pay for their own later-life care.
These concerns have played their part in the growing trend in semi-retirement. The state retirement age is now widely viewed as less of a milestone, with many choosing to work on past that date, for financial reasons or for the mental stimulation that work provides.
Professional Advice Provides Benefit
Research carried out for The London Institute of Banking & Finance* shows that many baby boomers have yet to put plans in place for the years that lie ahead. The findings show that 35% worry about how they will manage financially in retirement, 47% say they know they need to save more for the years ahead, 72% realise that they will have to provide for their own health care costs.
Interestingly, only 20% of those aged 50 to 59 who took part in the survey had taken financial advice, despite 44% freely admitting that they don’t have sufficient financial knowledge to make the best decisions financially for retirement.
Effectively Plan for Your Future
A long-running survey carried out by the thinktank the International Longevity Centre found that those who took financial advice between 2001 – 2007 had significantly higher savings than those who didn’t. If you’re approaching retirement and looking to be prepared for retirement, having a financial HealthCheck by financial advisers now could help you put in place the plans you need to provide effectively for your financial future.
*The London Institute of Banking & Finance, June 2018.