No retirement savings? Here are some smart moves boomers can still make today

Many baby boomers are thought to be rich because people over 55 have about 70% of the U.S. household wealth, but some boomers still have little or no retirement savings. Most boomers depend on Social Security, but even the maximum benefit usually isn’t enough to fully live on, and the future of the Social Security fund is uncertain.

Financial experts were asked what boomers should do if they are near retirement or already retired without savings. R.J. Weiss, certified financial planner (CFP) and CEO of The Ways to Wealth, said the first step is to change your mindset and stop blaming yourself for past financial mistakes. “Avoid self-blame and start with a positive outlook, knowing that incremental improvements can make a significant difference,” he said, as reported by GO BankingRates.

Change your mindset

Weiss advised boomers to take a full and honest look at all their finances, including Social Security, any part-time work, and expenses. “Honesty is very important here. Facing your financial reality, including any debt, is the first step toward improvement,” he said.


After checking finances, Weiss said boomers should set realistic monthly goals, like saving a small amount or cutting unnecessary expenses. “Focus on what you can achieve this month and build from there,” he said. “Long term, some very difficult decisions need to be made, but I find it helpful first to simply just get a good idea of where you’re at, before jumping to conclusions,” he added, as stated by GO BankingRates.

Maximize Social Security

David Fritch, CPA, financial advisor and estate planning attorney at Fritch Law, said delaying Social Security increases monthly benefits. Waiting until full retirement age or age 70 will give higher payments. Nischay Rawal, CPA and managing partner at NR CPAs, explained that Social Security benefits grow about 8% for each year you delay. “This can add up to 32% more in lifetime benefits if you wait until 70 to claim,” he said.

Rawal also said if you are still working, keep working even part-time because the income can supplement Social Security. “Any income you earn and invest will supplement your Social Security. Even part-time work or freelancing can generate income to contribute to an IRA, pay off debt or spend on essentials,” he said, as noted by GO BankingRates. For people who are retired, Fritch suggested considering part-time jobs that match your skills or interests. “Any income you can generate will help, and part-time jobs are ideal for supplementing Social Security. Look for jobs that match your interests and skills,” he said.

Cut spending and bills

Fritch said boomers should cut extra spending on things like dining out, hobbies, and entertainment. “Look for ways to reduce or eliminate discretionary spending on things like dining out, entertainment and hobbies,” he said. Lowering housing costs can help. Downsizing to a smaller home, refinancing a mortgage, or selling a house can give money to invest or use for retirement, Fritch explained.

Rawal said people who spend too much on their house (“house poor”) can generate income from it, like renting spare rooms or using a reverse mortgage. “If you own a home, renting out spare rooms or doing a reverse mortgage are options,” he said, as stated by GO BankingRates. Rawal also suggested annuities as a way to generate income, but noted they are not quick fixes and need planning.

Fritch recommended consulting a financial advisor if you can afford it to find safe ways to make money from investments. “Professional guidance can help determine what options match your needs and risk tolerance,” he said. Experts said that even late in life, taking small, smart steps can improve financial security and make retirement less stressful.

FAQs

Q1. What should boomers do if they have no retirement savings?

Boomers should check their money, set small savings goals, cut extra spending, and consider part-time work or Social Security planning.Q2. Can boomers increase their Social Security income?

Yes, delaying Social Security or working part-time can boost benefits and help cover expenses.