Is an additional source of income in retirement likely if you are a Baby B
All the evidence suggests that the answer will be ‘yes’ for the majority of boomers as they leave their careers or jobs (or are removed from them).
There’s a lot of anecdotal evidence also that the majority of baby boomers will not have near enough money put aside to maintain their current lifestyle.
And with the excellent health care available today the majority of Baby Boomers will be expecting to live well into their 80s or perhaps 90s.
This means their retirement savings will need to last 20 to 30 years beyond retirement.
That leads to the question “How much do you need in retirement savings?”
There are many
So, let’s do some quick arithmetic. Assume you had a $1 million in savings and you lived for another 20 years.
This would mean you would need to limit your annual spending to around $50 thousand
How much income in retirement will YOU need?
I won’t go into the many variables which would indicate what is the right amount to have put away for your retirement
But here are a few things you might want to consider in trying to estimate how much money you’ll need to have socked away:
- How long do you think you might live?
- What type of lifestyle do you want?
- What future costs can you anticipate? e.g.
- do you need to pay rent or pay off an existing mortgage?
Again, a lot of this is going to be guesswork so at the very least you ought to have been contributing throughout your career to some sort of superannuation or 401k plan.
Let’s consider then what the implications are if you haven’t been doing this, and/or if you know you don’t have enough money put away to fund your lifestyle in retirement
Little, or not enough savings?
Among your options will be to try and live on whatever government pension you might be entitled to receive.
In Australia the maximum fortnightly aged pension payable to a couple is currently $1258 and for a single person the amount is $834. (Note: This amount is subject to an assets test, so the amount you receive could be less than this.)
That translates into an annual income of $32,700 for couples and $21,684 for a single person.
Thinks for a moment what your current annual income is, and how this compares to what you’ll get with just a pension.
How would your present lifestyle be impacted if you had to live on a pension?
Superannuation specialists in Australia estimate that a couple could live comfortably on an annual retirement income of around $60 thousand. (This assumes though that you own your own home and therefore don’t have to pay rent.)
So, I’ll repeat the question. How would your current lifestyle be impacted if you had to live on an annual income, as a couple on $60 thousand a
Where to from there?
If you know you couldn’t make do with levels of income I’ve described above, then what are your options?
Should you decide to do nothing then one unpleasant fact is you’re going to have to make some big changes to your
Being a Baby Boomer myself, one of the important aims I have in this blog is to assist other Boomers to find ways to do that, and especially by starting their own online business.
Working with John Thornhill in his Partnerships To Success program is just one way I’ve decided to supplement my retirement income.
Why start a business?
Going into business for yourself in your retirement years isn’t necessarily all about earning some extra money.
Having spoken with hundreds of Baby Boomers as a career coach I know for a fact that many Boomers still want to lead productive lives.
Many Boomers will have, over their lifetime, developed incredibly useful knowledge and skills which are wanted and needed by upcoming generations. And, many Boomers love the idea of being able to share and teach others what they know and can do.
The idea of being active mentally, being open to learning new things, having the opportunity to generate additional income, and helping other people along the way are all strong motivators for Boomers to get involved in their own business.
Also, most Baby Boomers I know are into having a quality lifestyle, including the ability to travel, dine out, go to the theatre, help their children financially, spoil their grandchildren and so on.
By creating an extra source of income in retirement through an online business there’s no reason why these things can be restricted due to lack of disposable income.
Why an online business?
The way I see it, this is such a ‘no brainer’.
Given the availability of the internet and digital
Beyond the ease of setting your business up (easy yes, but there IS work involved) there are plenty of other advantages in considering an online business:
- You can work from anywhere as long as you have a laptop and an internet connection. This means you can take your office with you, so travel is clearly an option!
- When you’ve been shown how to do it, much of your online business can be automated.
- Similarly, you can also set up your business so that you have recurring or passive income. This means you do the work once, but get paid for what you do long after you’ve set it up
Income in retirement – Is there a catch?
Not really. The two biggest catches are:
- Not being prepared to try.
- Not being prepared to do the work in order to reap the rewards that are out there in the online world.
I also know that what holds a lot of people back from getting involved in an online business is they think they need a whole lot of technical knowledge.
Let me provide some reassurance on a couple of fronts:
- If you know how to cut and paste text from a Word document, and you know how to download and upload stuff to and from the internet then you’ve already got a couple of the essential skills
- The quality, the breadth and depth and easy availability of coaching to help people to learn how to set up and operate an online business
issimply staggering. If you can watch a video, and read and apply instructions then it’s quite possible you can do this.
The opportunities are definitely there, so, what’s stopping you? Is it:
- You couldn’t use the extra income?
- You’re afraid of hard work?
- You don’t think you can learn?
Income in retirement – Summary
Chances are if you are a Baby Boomer either
Using today’s readily available technology there are wonderful opportunities to set up and operate your own online business thereby reaping the kinds of benefits I’ve described in this post.
If the idea of doing this appeals to you then simply click on “Contact Us” at the top of the page. I’d be delighted to share with you my experiences, and answer questions you may have.