4 Retirement Trends To Watch in 2024 That Will Save You Money Monthly
Written by
Gina Hagler
Edited by
T. Woods
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The variables for a sound retirement shift as time passes, making planning or continuing your retirement tricky. The changes in variables range from which are the best cities for retirees to how best to optimize your retirement savings. Here are four retirement trends to watch out for in 2024 that can save you money each month.
1. The Best Retirement States
In 2022, Florida, Michigan, Arizona, Georgia and North Carolina were among the best states for retirees despite ever-rising inflation and the cost of living. In 2024, Ohio and New Hampshire have proven themselves to be ideal for retirees for considerations like the availability of health care, housing costs and general satisfaction of the population. Of course, that doesn’t mean that the best states for retirees can’t shift again in future years.
2. The Retirement Cruise
More retirees than ever before are spending their time on cruise ships.
As with nearly every other commercial realm, not all cruise lines are created equal. Some are more expensive than others, though retirees benefit from the ease of dining and housing being provided for them; some cruise ships even offer solid medical services.
Whether you’re interested in a permanent cabin or just an extended stay, you’ll need to carefully consider your insurance and taxes, as well as the cost of maintaining your other residence. You can purchase cruise travel medical insurance to cover you on the open ocean, where Medicare wouldn’t. However, even the best medical services might not be enough for those with certain chronic conditions.
Retirees are also being more adventurous on land, participating in travel tours, hiking and other outdoor activities. Many of these activities are located outside the US, where the cost of living may be lower. That being said, you’ll also want to fully assess the health care and local economy in deciding where to spend your time.
3. Scaling Back Real Estate Expecations
Senior citizens are looking for smaller housing opportunities, particularly those within welcoming neighborhoods. You’ll find these opportunities and senior living communities throughout the country, but you’ll want to make sure that your selection is within your budget.
4. Retirement Accounts
After 2025, the federal income tax rates are set to increase. This means that 2024 is an optimal year for Roth IRA conversions, allowing you to lock in your rates.
You should still be aware of your tax bracket over a long period, though. Financial advisors suggest making partial Roth IRA conversions over the course of several years to avoid entering a higher tax bracket.
There is also the Secure Act 2.0, which goes into effect this year with a number of changes to make saving for retirement easier for employees. For example, employers can match student loan payments through contributions to employee retirement plans. Also, employers must also automatically enroll eligible employees in new 401(k) or 403(b) plans with participation amounts of 3% to 10%.
Finally, designated Roth accounts in 401(k) or 403(b) plans will no longer have required minimum distributions (RMDs) for those age 73 or older.
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