Conventional wisdom suggests that Baby Boomers need to save at least a million dollars over the course of their working lives in order to pay for their retirement, whether they’re living at home or in an assisted living or Alzheimer’s Care community. After all, retirement can be expensive.
But some financial advisors and experts say that these figures may be overstated: in retirement, most people tend to spend less than they did during their working years and as a result, less money may be needed for retirement.
As reported recently in the Chicago Tribune, some financial experts recommend that Baby Boomers should think ahead about what kind of lifestyle they expect in retirement, so they know how much money needs to be saved.
“They can either spend this time on activities around the house that reduce overall spending such as doing more home repairs yourself, preparing more meals at home,” Susann Rohwedder of the RAND Center for the Study of Aging told the news source.
At the same time, additional money should be set aside in the event of a health crisis or any kind of change where a retiree will move into an assisted living or Alzheimer’s Care community.