March 2024: Don’t Retire Later, Retire Smarter

March 1, 2024

Grandparents talking to children. Family having leisure time in yard. They are wearing casuals.

Amid uncertain economic conditions, baby boomers aren’t feeling confident in their retirement plans. In fact, 70% of baby boomers expressed uncertainty over whether their retirement savings were healthy enough to carry them through retirement, according to a study from Retirement Living

The study, which surveyed 758 American baby boomers aged 59 and older about their financial plans, found that the average retirement savings of respondents came out to a little over $680,000. However, the majority said they’d feel more secure about retiring comfortably if they had around $1.2 million in the bank.

Retirement Living also found that 69% of baby boomers are worried about a potential recession, and that because of this, 22% of baby boomers plan on delaying their retirement. Most are planning to stay in the workforce for another five years or more. 

According to David Payne, Kiplinger’s staff economist: “The odds of a recession in the next 12 months are still 50%. The consumer expectations of future economic conditions are still poor. Businesses are likely to conserve cash and limit their spending for the rest of the year. Export markets figure to weaken. Government spending will continue, but no major new spending programs are on the horizon. In fact, any resolution of the debt limit issue could reduce federal spending, though likely by only a modest amount.” 

Americans are already working longer to save for retirement than they once were; a Gallup poll from last year found that the age individuals expect to retire has risen 60 in 1995 to 66 in 2022. 

Jeff Smith, senior content manager for Retirement Living, told Kiplinger, “In general, the average retirement age is increasing as life expectancy also rises. In addition to health factors, macroeconomic factors have made it more difficult to retire. For many workers, pensions and significant employer-backed programs are not an option for funding retirement.”

Retirement Living found that 18% of boomers relied entirely on Social Security or government programs for retirement income, 36% relied heavily and 26% relied moderately. While 78% of boomers reported that they weren’t going to let a potential recession delay their retirement, they’re still taking other steps to prepare their retirement funds for a possible recession. For instance, one in eight boomers have downsized their homes, and 5% are drawing equity from their home in order to retire. Here’s how respondents are preparing their retirement funds, according to Retirement Living. 

Decreasing Spending – 47%

Increasing savings – 30%

Investing in “safe” assets – 26%

Continuing to work full time – 26%

Diversifying Investments – 25%

Building up an emergency fund – 23%

Applying to part-time jobs – 20%

Applying to full-time jobs – 4%

None of the above – 11%

Are you worried about saving up enough money for retirement? With the high cost of   resources today, it’s clear that the task can seem daunting. But don’t worry, there are many other ways to find a comfortable retirement solution. Longview understands this concern and offers a moderately priced rental community with no up-front, buy-in or community fees. Our amenities and services give you the freedom to focus your time, energy and passion on what matters most to you. 

 With no buy-in fee and a range of features, amenities, and comforts, Longview seeks to assist those affected by inflation while providing a retirement experience that older adults deserve. Enjoy in-house dining, recreation, and our partnership with Ithaca College, making it an enriched, community-driven experience. 

Explore Longview and you’ll discover a relaxed, down-to-earth community of friends and neighbors. You’ll also receive a full line up of services starting at $2,135 per month – Ithaca’s best senior living value. Energized by neighboring Ithaca College, you can learn, grow and enjoy new experiences and connections every day. From music to metaphysics, Ithaca College offers Longview residents free classes, both at the college and right here at home. Residents automatically receive an Ithaca College affiliate ID badge that provides access to the library, pool and fitness facilities, bookstore, free meals, clinic services and much more. Every day here is a new opportunity to learn and grow. Pet- friendly, fun-loving and community-minded, our nonprofit mission is to promote your well-being, mind, body and spirit.