I’m a Financial Planner: 4 Financial Changes Boomers Approaching Retirement Need to Make in 2025

insta_photos / Getty Images/iStockphoto

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

You have been working for decades and finally, you can envision handing in your formal resignation that begins the initial process towards retirement. 

Depending on the actual date, you may want to consider creating a formal strategy at least 24 to 36 months beforehand. In 2025, Baby Boomers ages range from late 70s to early 60s. 

Therefore, if you are anticipating retirement in the next three years, here are four financial changes baby boomers approaching retirement should make in 2025.

Review Your Comprehensive Financial Plan

Having a solid financial strategy that is reviewed annually helps people to plan more effectively as one prepares to transition from receiving a salary to relying upon a fixed income that can comprise of a pension, social securities and savings.

This review will help you calculate how much money you require monthly to maintain a comfortable standard of living. It will also provide you with a realistic view your accumulated wealth. This reality may cause you to make different decisions than originally anticipated or provide you with the comfort in knowing that you can retire without a feeling of financial anxiety.

Consider Your Place of Residency

Many people plan to retire and ultimately relocate. Decisions regarding place of residency should be critically analyzed.

Do you own your current residence? Are you downsizing? Is there an outstanding mortgage? Have you considered the impact of the monthly expenses without a salary? Two major financial considerations for retirees are health and housing expenditures. 

Making sure you have determined your plan of action helps you navigate more seamlessly. It is not unusual for people to move closer to family, to warmer climate areas, to states that have been identified as retirement communities, etc.

Create an After-Retirement Vision Board

People are living longer, post-retirement. It is important to think about life after retirement, especially if your life has been consumed with working primarily without outside curriculum activities.

It can lead to people not having a purpose or a feeling of uselessness. Adopting a hobby or beginning to focus your attention on things you desire to do or goals you want to achieve when you have the time helps you to remain active.

In addition, consider the reality that if someone retires at age 67, their average life expectancy is potentially an additional 17 to 20 years. This is an opportunity to pursue your dreams, work independently, be creative, or even philanthropic.

Update Your Estate Plan

Updating an estate plan is critical because there will be a significant shift in your financial status. Several areas of concern include reviewing beneficiary designations.

Since a large portion of your overall estate plan can be identified as assets that are will-substitutes, knowing how your financial affairs will be managed is important. Simply put, a will-substitute are assets that bypass probate and is directly payable to the identified beneficiaries. The money is easily accessible the moment a death certificate is produced. The eventual beneficiary is not financially obligated to contribute to payment of financial expenses.

But even before death, an estate plan should involve a conversation addressing someone’s long-term care needs. Hopefully, this concern has been addressed long before one considers retirement solely based on its tremendous impact it can have on an estate plan. However, it should serve as a trigger to give this financial concern serious thought. Why? Because sickness and aging overall can deplete your overall net worth if a strategy or plan is not in place.

Planning for one’s eventual retirement can be both exciting and overwhelming. The best way to prepare for a successful transition is to ensure you have set certain parameters in place, reviewed all potential vulnerabilities and created a strategic plan for what’s next in your life. Waiting until the last minute will minimize your options to adequately prepare for the unknown and inevitable.

Share This Article: