The Social Security Administration is receiving around 10,000 applications for benefits every day because of the fact that the baby boomer generation is now reaching retirement age. This number of people will be applying daily for the next 20 years.
Because of this phenomenon researchers have been conducting surveys with regard to the retirement preparedness of baby boomers. The overarching theme after the results have been evaluated seems to be that a high percentage of these individuals are not financially prepared for retirement.
Rather than dwelling on the causes of unpreparedness, what can you do if you find that you are not ready to retire when you start to see your 60s come into focus?
There are a few things to consider. Depending on the exact year of your birth the age of eligibility for full Social Security benefits is either 66, 67, or somewhere in between if you are not currently eligible.
An option would be to delay your retirement beyond your full eligibility age. When you do this you accumulate delayed retirement credits that will raise your monthly benefit when you do start receiving it. However, these credits stop accumulating when you reach the age of 70.
Another possibility would be to change your living situation. You could downsize into a smaller place of residence, and perhaps relocate to a state that has lower taxes. Florida for example has no state income tax and no state estate tax. You may also save on utilities by moving to a place that has a much milder climate.
Working part-time after you start receiving your full benefit can be done as well without incurring any penalties.
These are a few things to think about. If you want to dive into the subject more deeply and develop a recovery plan as a middle-aged person who is concerned about the future simply arrange for a consultation with a licensed and experienced retirement planning attorney.