10 Things Boomers Should Always Buy in Retirement
The baby boomer generation, born from 1946 to 1964, has started reaching retirement age in mass in the United States. Unlike the silent generation before them and the subsequent Generation X, many baby boomers are in a good financial position to retire comfortably if they made smart purchases and money moves during their careers.
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You can factor in all the Social Security benefits and retirement income you want, but when it comes to retirement planning there are a few key things every boomer retiree should always purchase. Why are these items essential for boomers?
Dennis Shirshikov, a professor at the City University of New York specializing in finance, economics and accounting, explained it like this: “Each of these items addresses fundamental aspects of aging, from financial security and health to maintaining social ties and independence. Retirement should be about preserving quality of life, and these purchases support that goal in various ways.”
Here are 10 things boomers should always buy in retirement.
Comprehensive Health Insurance
Boomers are coming to terms with focusing more on health and healthcare costs. Make sure you have health insurance to cover those costs, as basic Medicare might not be enough.
Michael Collins, CFA, founder and CEO of WinCap Financial, noted, “Boomers should always invest in good quality healthcare insurance to ensure they have access to quality healthcare when needed and to avoid large medical bills.”
“As health needs increase with age, having robust health insurance becomes indispensable,” Shirshikov said. “This goes beyond basic Medicare; supplemental plans that cover additional expenses such as prescriptions, dental, and vision care can significantly decrease potential out-of-pocket health costs.”
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Long-Term Care Insurance
According to the U.S. Department of Health and Human Services, 70% of people over the age of 65 will need some form of long-term care in their lifetime, Collins relayed.
“Boomers should always invest in long-term care insurance to cover the costs of assisted living, nursing homes, and in-home care,” added Collins.
“Given the high cost of long-term care, whether in-home or in a facility, this type of insurance can protect retirees’ savings and provide more choices for care settings. It’s a prudent buy, considering the peace of mind it brings,” explained Shirshikov.
Annuities
To mitigate the risk of outliving their savings, boomers — and all other age groups quite frankly — should consider purchasing annuities, according to Shirshikov.
“These financial products can provide a steady income stream for life, aligning well with the need for financial stability in retirement,” Shirshikov explained.
Updated Technology
“Investing in current technology — like smartphones, tablets or emergency alert systems — can enhance daily life, maintain social connections and ensure quick access to emergency services,” said Shirshikov.
“As the world becomes more reliant on technology, boomers should always invest in the necessary devices and internet access to stay connected with loved ones, manage finances and access important information,” added Collins.
Home Modifications
“As mobility becomes limited, investing in home modifications can significantly improve quality of life and independence,” Shirshikov pointed out. “Items like stairlifts, walk-in tubs and ramps are not just conveniences; they are essential for safe aging in place.”
“Boomers should always prioritize making these modifications to ensure they can age in place comfortably and safely,” Collins suggested.
Vehicle Adaptations
“For those who continue to drive, vehicle adaptations such as pedal extenders, seat cushioning or hand controls can be essential for maintaining independence and safety on the road,” Shirshikov mentioned.
Beyond just modifying a current car in their possession, boomers should maybe look into purchasing a vehicle they know can always be on hand and ready to use — if not by them, then by a family member, friend or neighbor they trust.
“Boomers should always make sure they have a reliable mode of transportation,” Collins recommended. “This could mean purchasing a new car with modern safety features or investing in regular maintenance for an older vehicle.”
Legal and Financial Advisory Services
“Regular consultations with financial advisors and legal experts can help Boomers navigate the complexities of estate planning, tax strategies and retirement savings management,” Shirshikov said.
Collins suggested that estate planning be a top priority for boomers to purchase, just in case the worst-case scenario happens.
“It’s important for boomers to have a proper estate plan in place to protect their assets and ensure their wishes are carried out after they pass away,” Collins said. “This may include creating a will, setting up trusts and designating beneficiaries for retirement accounts.”
Travel
Retirement is when you have all the time in the world for relaxation, rest and pleasure — particularly for a generation prioritizing work and careers. Use some of your hard-earned income to go somewhere you have never been or a place you always love to visit.
“Boomers should always budget for travel and leisure activities to stay physically and mentally active, and to create lasting memories with loved ones,” Collins said.
“Often overlooked as a ‘luxury,’ travel can be an essential aspect of retirement, offering relaxation and cognitive and social stimulation,” said Shirshikov. “Planning trips and exploring new places can be incredibly enriching.”
Community Classes or Club Memberships
“Participating in community events, taking classes, or maintaining club memberships can provide social engagement, which is essential for mental health and well-being,” Shirshikov said.
This is particularly true of fitness and wellness programs beneficial for boomers’ post-work life.
“Staying active is crucial at any age, especially in retirement. Programs tailored to older adults can help maintain mobility, strength and mental health,” Shirshikov said.
Emergency Fund
Just because someone is retired does not mean that accidents won’t happen and that life will be smooth sailing from that point on. Lots of emergencies can pop up, so it’s important to stay financially ahead of the game with some quick money on hand.
“Unexpected expenses can arise at any time, and having an emergency fund in retirement can provide peace of mind and financial stability,” Collins said. “Boomers should always have a designated emergency fund to cover any unexpected costs.”
Caitlyn Moorhead contributed to the reporting for this article.
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