Baby Boomers turn 65 in 2010

Baby Boomers were born in the years after World War 2, typically classified as those born from 1945 to 1964.  What that means is that the oldest of the Baby Boomers are turning 65 years old in 2010, and 65 seems to be the magic retirement age.

This means something different than it did back in the 1940s when retirement was really embraced.  Back then, it was quite likely that if you lived to 65, you would only live a couple of more years, therefore you usually only needed enough to live on for a few years after retirement.  That is not the case anymore.  If you retire at 65 today, there is al most a 50% chance that you will live to be 87 years old, meaning you need enough to support you for over 20 years.

If you want to retire without having to worry about taking a new job or relying on a too-small pension cheque, you need to do a few important things before you tell your current employer good-bye. Most of these things take time – lots of time – so get started as soon as possible. It's never too early to start thinking about the time when you will get to travel, spend time with your family and sleep late instead of getting up early and going to a job that you don't really want.

• •Buy, and pay off, the house that you want to be your home for the rest of your life. You'll still pay taxes, yes, and you'll still have to worry about maintenance and homeowner's insurance. But if you pay off the house before you retire, you don't have to deal with that payment. And the house will be yours, free and clear, so you can relax knowing that you'll always have a comfortable place to live.
• •Repair and maintain your current vehicle or buy another one. If you can get out of making car payments once you retire, then you can free up hundreds of dollars a month to spend on other, more interesting things – like sporting events or family outings.
• •Pay down, or off, your outstanding lines of credit and credit cards. If you don’t have to worry about paying off extra debt once you retire, you’ll be in better financial shape.
• •Have a retirement portfolio. A good investment planner will help you figure out the best way to save your money. Try to diversify: this way, you won't have to worry about one bad investment wiping out your entire retirement plan.
• •Get a health check up so you know about your health history and how to take care of your self.  Look at the cost of any drugs or medical aids you may need to make life comfortable.  Your health, and the cost of maintaining it, may have a big impact on what you can do in retirement.
• •Work out your monthly budget. You might end up with more money than you expect – especially if an investment pays off well – but you need to know exactly how much you absolutely must have every month. Make adjustments to this budget as you get closer to retiring: inflation and other factors can change your figures.
• •Think about what, if anything, you want to do every day once you're retired. Many retirees start their own businesses, travel all over the world or just settle down and spend time with their families. You don't have to plan every minute of the rest of your life, of course. But if you want to invest in a business or do something else that's going to require a big chunk of money, you should go ahead and start planning now so that you'll have what you need when you leave your current employer.

Planning ahead for your retirement will make those years of your life easier and more enjoyable. If your plans work out, you won't have to worry about your monthly budget, what to do with your extra time or what new career you'll begin.
Jerry