5 Reasons Boomers Should Continue Investing in Retirement

Baby boomers — the generation born between 1946 and 1965 — are either deep into or preparing to enter retirement. A lifetime of hard work and investing has paid off, and relaxation can begin. So, why should they continue investing once retirement begins?

GOBankingRates has culled together several reasons continuing to invest deep into retirement can extend not only retirement length but its joys as well.

Also see investments you should stay away from in retirement.

There are limits to how much money can be placed into IRA and 401(k) accounts; if you happen to find yourself with an abundance of spending money, retired boomers might find it advantageous to put that cash into tax-friendly investments — especially those that are not subject to federal income taxes.

Low-cost index funds are not only easy and low effort, but they can pay off rather well, too. These index funds historically have had an annual return of at least 7% — meaning a yearly investment of, say, $5,000 yields a $224,000 payout 20 years later. That’s a nearly a quarter of a million dollars earned by age 85, if you began investing at the retirement age of 65.

Thanks to advances in medicine and technology, people are living longer than ever before — meaning that retirees are requiring more and more money as they are living longer than ever before. Investments can help bolster and augment a retiree’s savings.

As inflation continues to be a serious economic issue, inflation-protected Treasury securities can help protect your retirement savings.

Boomer retirees who want to protect against risk and guard their retirement savings can always do so with a diversified investment portfolio. Funneling portions of your savings into a variety of avenues (stocks, bonds and more) can help protect them. Further, smart investing can provide peace of mind for retirees, who can spend their retirement knowing their money is working for them while they relax.