Many of those nearing retirement have financial concerns, even as the effects of the recent recession continue to fade and the economy improves in general. From saving for retirement to making ends meet, it can be difficult for baby boomers to achieve their goals. Those efforts might be further complicated when other family members come to live with them.
These days, it is growing more common for baby boomers to have multi-generational homes long after they might have planned. These homes include grown children moving home after they graduate from college, as well as elderly parents who may be well enough to live independent of long-term care, but unable to live alone. In either case, supporting these family members can hinder a worker's efforts to save and live comfortably in retirement.
Consequently, many boomers are now altering their living situations to find a home that can meet their own needs, as well as those of their live-in family members. This trend, known to some as "right-sizing," essentially means that the concept of retirees moving into smaller homes once they stop working is becoming less common. While some are still downsizing, others may choose to stay in their current homes or move into larger properties to accommodate their families. Further, others pour funds into improving their current living areas to better meet their needs.
Moving into larger properties, or upgrading current properties, may be something for which you have not planned in the time leading up to your retirement. These costs can endanger your ability to live comfortably once you stop working. As such, having an extra savings cushion of some kind can be vitally important in helping you to avoid significant shortfalls in your retirement incomes.
Caring for older children can hurt finances Even if their kids aren't living at their homes anymore, many soon-to-be and current retirees appear to still be helping their children out financially.
A survey by CouponCabin.com found that more than a quarter of baby boomers still supported their older children financially. This has led more than two in five respondents to share that they are postponing retirement.
Weigh in: Do you financially support family members? How has this affected your retirement savings plans?