Baby boomers, often called ‘boomers,’ are members of the generation born between 1946 and 1964. Many in this category of people who do not have retirement savings struggle to cover their daily needs with Social Security, which is a raging concern.
However, many boomers have managed to find ways around this problem, and we’ll be looking at some detailed PSI. But before we get into that, let’s explore some discoveries about the baby boomer generation and their assets.
The Struggle of Retirement
According to the April 2024 report from the Retirement Income Institute, the retirement-focused research division, more than half of baby boomers have assets valued at less than $250,000. With this kind of limited savings, many senior citizens rely on Social Security benefits of a little more than $1,000 monthly.
Considering that this is meant to cover groceries, car repairs, medical expenses, and utility bills, it is not enough for many. However, living on $1,000 in Social Security benefits every month is not impossible. Boomers can live happy, fulfilled lives on a tight budget by applying these retirement experience tips to their lifestyle.
Downsize and Simplify
According to many boomers, moving to a smaller or even a tiny house can significantly reduce expenses. This not only cuts down on housing costs but also reduces property taxes, utility bills, and maintenance expenses.
According to Jane, a 69-year-old retiree, she moved from a three-bedroom house to a one-bedroom apartment. And even though it took her some time to adjust at first, she now saves a ton of money on general upkeep, heating, and cooling. Plus, she decluttered a lot, which helped her realize how little she actually needed to be happy.
Budget Your Income Wisely
Budgeting carefully is necessary while living on a fixed income. You can control your spending by keeping track of every expense and setting spending limits for different categories. A lot of boomers track their finances with simple spreadsheets or budgeting apps.
According to Joe, who’s been retired for five years, it’s always important to prioritize your needs over your wants. First, set aside money for necessities like food, housing, and medical expenses. Then, you can use whatever is left for non-essentials, but be mindful of impulse purchases.
Practice a Frugal Lifestyle
Being frugal becomes an important ability in retirement. You can stretch your money further by using coupons, shopping at thrift stores, and taking advantage of senior discounts. In addition, a lot of boomers use DIY solutions for home maintenance, gardening, and even crafting gifts.
According to Mary, a 72-year-old retiree, shopping from thrift stores can get you quality items at a fraction of the price. She further revealed that she grows her own veggies, keeping her active and healthy while saving money.
Make Use of Community Resources
Boomers can save some money when they use resources that their communities often provide. Local senior centers can offer resources like exercise classes, social activities, and free or low-cost meals. Churches and food banks also support people in need.
Bill, a 72-year-old retiree, revealed that he regularly goes to his local senior center. Thanks to their free fitness classes, he can stay in shape without needing a gym membership. He’s also made amazing friendships there.
Save on Healthcare
Healthcare can be a significant expense in retirement, and it’s important to consider every possible method to reduce these expenses. You can control your health expenses by using generic medications, going to free health clinics, applying for Medicare, and taking advantage of any other state benefits that can help manage healthcare expenses.
According to Susan, who lives on Social Security benefits, people should compare prescription drug prices and use generic alternatives when possible. Don’t be afraid to ask your doctor for samples or less expensive substitutes. Taking good care of your health without breaking the bank is possible.
Be Creative in Your Socialization
Socializing doesn’t have to be costly. Simple and inexpensive activities like hosting potluck meals, joining reading clubs, or taking part in community events can bring happiness to many boomers. Volunteering is another great way to meet new people and maintain engagement.
Linda, a 69-year-old retiree, revealed that she hosts potlucks with her neighbors as a low-cost way of enjoying her social life. She eats a wide variety of meals without spending much money because everyone brings a dish. It’s fun and strengthens ties within the community.
Entertainment on a Budget
There are many ways to have fun and entertain without breaking the bank. Libraries provide free access to movies, books, and sometimes even local activities. And many cities offer free concerts, discounted days at museums, and parks for relaxing outdoor activities.
James, a retiree, shared that he always takes advantage of library resources, such as the great collection of books and movies. He also expressed how amazing it is that so much can be done without paying any money.
Travel Smart
Careful planning is necessary when traveling on a limited budget. You should look out for off-peak discounts and travel offers. Traveling by car can also be an affordable way to explore new places.
Margaret, a retiree who enjoys traveling, revealed that she uses travel points from her credit card to plan trips during the off-season. You can also consider staying with friends or using home exchange programs for house swaps to reduce the cost of lodging. Traveling the world doesn’t have to cost you a fortune.
Creative Housing Solution
Housing is sometimes the largest expense for boomers; nevertheless, there are creative ways to save costs. You can consider sharing the house with another retiree to split the utility bills and rent. Some even look into alternative kinds of housing, like tiny homes or RV life.
According to Karen, a retiree who shares a home with her friend, they split all the bills, making everything much cheaper. Plus, they share responsibilities and keep each other company. It’s a great way to stay social and save money.
Make Your Home Energy-Efficient
Improving energy efficiency in your house can reduce utility bills. Simple changes like using energy-efficient appliances, weather-stripping doors and windows, and switching to LED lighting can lower monthly expenses.
According to George, a retired teacher, he had switched to LED bulbs and installed weather stripping around his windows, which helped him cut down on his energy bills. Investing in energy-saving efficiency can lead to big savings in the long run.