Baby boomers should be in retirement-preparation mode now — if they are not already retired. If you are between ages 52 and 70, here are five things you can do now to build sufficient retirement savings for later:
Downsize your home, set those savings aside
One of the best baby boomer saving tips is to downsize by moving to a smaller home, condo or possibly a rental apartment. But just downsizing isn’t enough. Take the actual amount you are saving, and put that money aside — in an individual retirement account, Roth IRA, 401(k) or savings account — and designate it for retirement.
Trade in that luxury car for something more economical
If you are driving to impress with a lean retirement pocketbook, you might want to consider selling your vehicle for a low-cost-to-own model. If you trade down to a standard-model vehicle, keep it a long time and you could save an average of $4,000 per year. That could help a 52-year-old baby boomer amass an extra $80,000 by age 72.
Send your kids away from the nest
If you keep supporting your kids as they grow into adulthood, you are depriving yourself of the future retirement savings that could be going into your own account. Additionally, you are possibly setting your kids up for more dependence and a potential future filled with care of mom and dad. Stop subsidizing the kids and invest the savings for your own future now.
Take the time to eliminate all forms of debt
For those who have credit card balances, commit to paying at least 10 percent of your income toward your debt. In fact, auto-pay the debt so that you won’t have to make a decision every month about whether to pay. After a month or two, you won’t even miss the money coming out of your checking account.
Start to take better care of yourself
If you live a healthy lifestyle, you are more likely to save money on a litany of costs. Medical costs will decline, you will save money on expensive vices such as smoking and drinking, you will spend less on prescription drugs and your food budget will drop. Start small with an app that has healthy eating tips, motivation and mini-workouts to keep you on track.