Only 16% of Boomers Think They’ll Become Wealthy: 5 Tips To Help Them Build Wealth Now

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According to a recent LendingTree survey, only 16% of baby boomers believe they will become wealthy in their lifetime. Other generations were significantly more optimistic about their chances of becoming rich. Of Gen Zers surveyed, 62% said they believed they could still become wealthy, while over half (52%) of the millennials who didn’t already consider themselves rich believed the same. 

Among all generations, baby boomers were the most pessimistic about their future wealth prospects, likely due to factors such as their age and economic uncertainty. The good news is that there is still time, even for those soon-to-be retirees.

Here are five tips that will help boomers build wealth now.

Maximize Retirement Contributions

According to the U.S. Department of Labor, approximately 15% of the labor force is baby boomers. This means that millions of boomers have yet to retire. Whether working because they have to or want to, delaying retirement can help seniors build wealth. Working boomers are encouraged to maximize retirement contributions.

Experts recommended that by the age of 60, a person have between 8 and 11 times their annual salary saved. If a retirement fund has fallen short of the ideal number, individuals may be able to use catch-up contributions. People over the age of 50 can contribute an additional $7,500 to certain retirement plans in 2025, and people ages 60-63 can contribute up to $11,250 in catch-up contributions, according to the IRS.

Delay Social Security

Another tool for building wealth is delaying Social Security. Individuals can start claiming Social Security at age 62, but it may not be the best plan for wealth building. Each year that benefits are delayed adds 8% up until the age of 70, as reported by U.S. News & World Report. Waiting a few years can help to ensure more financial security in the future, since monthly benefits will be higher than if Social Security is claimed at 62.

Downsize

While downsizing might not be an option for some boomers, it is a good tool to help reduce expenses. Moving to a smaller home or even a less expensive area can help save money. Money saved from downsizing can then be invested to help generate income.

Find Sources of Income

While sitting behind a desk may hold little to no appeal outside of a steady income, many boomers aren’t ready to completely leave the workforce. Finding a side hustle can help seniors stay active while providing revenue. According to Side Hustle Nation, around 25% of baby boomers have a side hustle. Popular side jobs for seniors include flea market flipping, pet sitting and consulting.

Take Advantage of Medicare

One cost that can catch boomers by surprise is healthcare. Healthcare expenses can be exorbitant, particularly in later age. Medicare can help offset these costs. Eligibility for the program starts at age 65, and prompt enrollment is recommended. Taking advantage of affordable healthcare can help boomers stay off medical debt and save money throughout retirement. While it may not lead to riches, it can help to provide financial stability. 

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