10 Savvy Money Moves Baby Boomers Are Making in Retirement

Core Insights - Baby boomers are making several positive financial moves in retirement, countering the common narrative of their financial missteps Group 1: Downsizing - Many baby boomers are choosing to downsize to smaller homes in more affordable areas, which reduces monthly housing expenses such as mortgage payments, property taxes, utilities, and maintenance costs. This strategy allows them to allocate more funds towards healthcare, travel, hobbies, and other interests [3] - Downsizing also enables baby boomers to build up their retirement savings by selling larger homes and investing the proceeds [4] Group 2: Delaying Social Security - Delaying Social Security benefits until age 70 can lead to significantly higher monthly payments, with an increase of about 8% for each year that benefits are delayed after age 62. This strategy can provide a more comfortable retirement income for those who can afford to wait [5] - Delaying benefits can maximize lifetime benefits, which is particularly advantageous for baby boomers who expect to live longer [6] Group 3: Establishing a Home Business - Some baby boomers are starting home businesses to supplement their retirement income, allowing them to remain productive and utilize skills acquired throughout their careers. Home businesses offer flexibility in scheduling and are often less costly to start and maintain compared to traditional businesses [6][7] Group 4: Investing in Real Estate - Investing in real estate is a smart financial strategy as it provides income and serves as a hedge against inflation. This approach is particularly beneficial for baby boomers, who can use real estate investments to enhance their earnings [7]