Some Boomers Who Are Financially Worse Off Than Their Parents Might Be Able to Make Ends Meet Abroad
Live In Costa Rica - Although retiring in Costa Rica or another country south of the border is not an option for everyone it can possibly mean the difference between having to work all of one’s life or enjoying the time you have left.
By simplifying your lifestyle, downsizing, getting rid of your car and a lot of other possessions and above all moving to a more affordable place you can live for a lot less. Fruits and vegetables, public transportation, rentals, medical care, home taxes, movies and other forms of entertainment are generally cheaper in Costa Rica. A single person should be able to by on $1500-$2000 per month without sacrificing much.
Adjustment to the culture, food, language and a different way of life may be necessary for some but really is a small price to paying for living more affordably and saving your retirement. I would be lying if I said that Costa Rica is for everyone, but for many it is the solution to their retirement dilemma.
Let’s look an article from Bloomberg Business the describe’s the plight of many Boomers who are worse off than most of their parents.
“While plenty of baby boomers, born from 1946 to 1964, have become affluent, and many elderly across the U.S. face financial hardship, the wealth disparity between boomers and their parents is emblematic of a broad shift occurring around the country. Many graying boomers are less secure financially and have a lower standard of living than their aged parents. The median net worth for U.S. households headed by people aged 55 to 64 was almost 8 percent lower, at $143,964, than those 75 and older in 2011, according to U.S. Census Bureau data. Boomers lost more than other groups in the stock market and housing bust of 2008, and in the aftermath many also lost their jobs at a critical point in their productive years.”
“That’s left many ill-prepared to provide for themselves as they approach old age, even as they are likely to live longer than their parents. For the first time in generations, the next wave of retirees will probably be worse off than the current elderly. More than half of those aged 50 to 64 think their standard of living in retirement will be somewhat or much worse than their parents’, according to a 2011 survey by the AARP Public Policy Institute. “Baby boomers are the first generation without the safety net of pensions and other benefits their parents have,” says Alicia Munnell, director of the Center for Retirement Research at Boston College. “They’re facing a much more challenging old age.”
Even if boomers saved more, they would have been hurt by a shift to 401(k) accounts from pensions in the 1980s. Thirty-seven percent of the elderly in the U.S. collect pensions, which provide some guaranteed income until they die. Fewer than 10 percent of boomers do, and that number is quickly shrinking.
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