What Baby Boomers Get Wrong About Retirement, According to Suze Orman

what baby boomers get wrong about retirement, according to suze orman

Womens Conference, Long Beach, USA

As you plan for the golden years of retirement, it’s important to take a step back and examine the route we’ve plotted to get there.

Find Out: How Much Monthly Income Could You Get From a $200,000 Annuity?

Try This: One Smart Way To Grow Your Retirement Savings in 2024

Suze Orman, a beacon of financial wisdom, offered some critical advice for baby boomers navigating the choppy waters of retirement planning in a blog post on her website.

Here’s a look at her insights into where many boomers are going astray and her advice for getting your finances back on course.

Sponsored: Credit card debt keeping you up at night? Find out if you can reduce your debt with these 3 steps

The Debt Trap

One of the most alarming trends Orman has noticed is the significant debt load carried by individuals as they approach retirement.

And her stance is clear: entering retirement in debt is a pitfall that you should avoid at all costs. The key to a secure retirement is to be free from the chains of debt.

Why? Because with retirement comes a fixed income, and the last thing you need is a chunk of that income going towards debt repayments. Moreover, the psychological relief of being debt-free can significantly reduce stress levels, allowing you to truly enjoy your retirement years.

Separating Needs from Wants

So, how does one break free from debt? Orman challenges you to take a hard look at your current expenses, and she suggests using tools like expense tracking apps to identify areas where spending can be cut.

The goal is to differentiate between what you absolutely need and what you can live without. Orman bets that you can find at least $250 a month in unnecessary expenses that could be redirected towards paying off your debt. And that’s just the start.

The Mortgage Question

For many, the dream of retiring doesn’t involve leaving the family home, but Orman suggests rethinking that, especially if you have a mortgage.

If you plan to stay in your current home post-retirement, she advises making it a priority to pay off your mortgage by the time you retire. If you’re contributing more to your 401(k) than needed to get the maximum match, consider scaling back to free up funds for your mortgage.

But here’s the kicker: only pursue this path if you can truly afford to stay in your home. Orman emphasizes the importance of being realistic about the ongoing costs associated with homeownership, such as insurance, property taxes and maintenance.

If these expenses will stretch your retirement budget too thin, it may be time to consider downsizing or relocating to a more affordable setting.

The Bottom Line

Retirement should be a time of peace, relaxation and freedom. To achieve this, Orman urges baby boomers to tackle their debt head-on, live within their means and make strategic decisions about their living situation.

By taking these steps, you can secure a financial foundation that supports a retirement filled with joy and devoid of financial stress.

Editor’s note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates’ editorial team.

More From GOBankingRates

    This article originally appeared on GOBankingRates.com: What Baby Boomers Get Wrong About Retirement, According to Suze Orman

    OTHER NEWS

    23 minutes ago

    Peter Dutton reveals intent to cut migration and support first-home buyers

    23 minutes ago

    How relevance deprivation syndrome has liberated me in my retirement

    23 minutes ago

    'Let Them Be Kids': New youth campaign tackles dangers of social media

    23 minutes ago

    Video: Candid Aussie reveals surprise job that pays $50 an hour - and only requires one week of training and no degree

    24 minutes ago

    Boxing-Usyk beats Fury to become undisputed heavyweight champ

    24 minutes ago

    Simbine registers fastest 100m of season, Lyles superb in 150m

    24 minutes ago

    Irish business tycoon and rugby record breaker Tony O'Reilly dies at 88

    28 minutes ago

    Golden girl! Cate Blanchett stuns in a puffy metallic gown as she attends Cannes Film Festival - before getting a four-minute standing ovation for new film Rumours

    28 minutes ago

    Sam Kerr wins fifth straight WSL title with Chelsea - as Mary Fowler endures public heartbreak

    28 minutes ago

    Texas Gov. Greg Abbott pledges to keep bussing migrants to NYC: ‘Mayor Adams needs something to do’

    28 minutes ago

    Actress Lucy Punch will reunite with Dame Joanna Lumley for Motherland spin-off

    28 minutes ago

    Shane Lowry ties major-championship scoring record with 62 and makes biggest move on Moving Day at 2024 PGA Championship

    28 minutes ago

    ‘Emilia Pérez' Review: Leading Lady Karla Sofía Gascón Electrifies in Jacques Audiard's Mexican Redemption Musical

    28 minutes ago

    Six of the best: Manchester City’s mainstays who have gone distance

    28 minutes ago

    Dublin’s hopes broken by Eoin Cody’s saving grace as Kilkenny get back on track

    29 minutes ago

    Streep, Gerwig shine on Cannes red carpet

    30 minutes ago

    Tyson Fury accuses judges of helping Oleksandr Usyk win because Ukraine is ‘at war’

    31 minutes ago

    Police arrest suspect in 1989 cold case killing of 78-year-old Pennsylvania woman

    32 minutes ago

    Revered Chicago candy shop makes People magazine's summer travel bucket list

    35 minutes ago

    Video: Inside Cristiano Ronaldo's arrival for Oleksandr Usyk's historic victory over Tyson Fury... as the football star is welcomed by Saudi Arabia officials before taking his ringside seat

    36 minutes ago

    'Whether they're from Donegal or Senegal, it makes no difference': A night at the Lighthouse café

    36 minutes ago

    RA_17MAY24_FLV_WILLIAMS_IS_CLEAR_FAVOURITE_FOR_GOALKEEPER_OF_THE_SEASON_16-9.mp4

    37 minutes ago

    Hepatitis A case reported at Beverly Hills Whole Foods

    37 minutes ago

    Chelsea vs. AFC Bournemouth, Premier League: Preview, team news, how to watch

    37 minutes ago

    The Look Ahead: May 17, 2024

    37 minutes ago

    Should Your Engine Be Hot Or Cold When You Check Oil Levels?

    38 minutes ago

    HISD, Cy Fair ISD and Spring Branch ISD give updates on status of their schools

    41 minutes ago

    MCoBeauty founder Shelley Sullivan 'abruptly' splits from husband Anthony seven years after lavish wedding

    42 minutes ago

    Lok Sabha polls: Kharge accuses PM Modi of ‘provoking’ people, calls on ED to take action

    42 minutes ago

    World-first live remote muster by drone at Beef Australia 2024 a sign of thing to come for cattle industry

    43 minutes ago

    Depleted Bristol beat Harlequins in thriller as both teams miss semi-finals spots

    43 minutes ago

    Best beach cover ups: sarongs, kaftans and more

    43 minutes ago

    Does servicing outside your dealership void your warranty?

    43 minutes ago

    Rep. Ritchie Torres talks lithium-ion battery safety legislation

    43 minutes ago

    After five years, three bridges and two floods, a permanent Mersey River crossing is now open

    43 minutes ago

    Shane Lowry ties major championship record, shoots 9-under 62 at the PGA

    43 minutes ago

    Donald Trump attends youngest son's graduation

    43 minutes ago

    Pittsburgh Penguins' Mike Sullivan to coach U.S. Olympic men's hockey team in 2026

    45 minutes ago

    ‘The Balconettes’ Review: A Very Bloody, Somewhat Didactic, Game – Cannes Film Festival

    45 minutes ago

    Will Quebec’s forest fire season be as bad as it was last year?

    Kênh khám phá trải nghiệm của giới trẻ, thế giới du lịch