One fact that baby boomers should understand is that it is easier and better to invest in a retirement plan at the earliest opportunity preferably starting with your first income or job. It is never too early to start saving for retirement.
The following are tried and tested methods which baby boomers can use to secure a good retirement plan for themselves and families
- Start saving early.
Starting to save early through investments plans is a good method. Baby boomers have a great opportunity to choose a good investment and save less amounts. This is because if you invest early, you will have a huge pool of savings when you eventually retire. If you start late you will have to contribute higher savings to be at par with the early saver, this could be taxing and expensive.
- Contribute to employer’s retirement saving plan.
Most baby boomers are into fixed income jobs. Investing for your retirement through the employer is a good method. The employer sends contributions from the employees’ paycheck. However, one should understand the terms and conditions. It should be clear how long one should contribute and the process of claiming the benefits in case of retirement. In some instances, the employer may not have a good retirement plan. It is wise to craft an arrangement that will be convenient for both of you.
- Enroll in the employer’s pension plan.
Majority of employers have a pension plan for their employees. Both the baby boomers and their employer contribute towards this scheme which matures at retirement or at the agreed years. A good understanding of the terms and conditions of the pension plan is necessary. They should seek to know the mode of contribution and what happens when the plan matures.
- Contributing for the National Social Security plans and the individual retirement arrangement.
In a good number of both developed and developing countries, a contribution for the National Social Security fund is compulsory. The government sets categories and amounts for the employee to contribute based on the job classification and nature of work. It is the mandate of the employer to remit their employees’ contributions to the relevant body. It is an affordable retirement plan for Baby boomers.
Individual retirement arrangements are important; it is also good to open an individual account for the sole purpose of saving for your retirement. This is important especially as an extra method to the employer or government based ones. However, baby boomer should be keen to exercise discipline especially in remitting their savings for such a retirement plan,
- Opening a GOLD IRA account or physically buying precious metals from banks and other approved sellers. In addition, precious metals stand out from other types of retirement plans because they are easily accessible and can withstand inflation.
- In fact, they do best when there is inflation. In case it takes place in that period of retirement, people will remain unaffected by it. The demand of precious metals is at their best during inflation.
- Owning precious metals such as Gold, silver, platinum and palladium is a great way to invest for retirement. It is good to open a GOLD IRA (individual retirement account).This is an account designed specifically for storing precious metals as an investment for retirement. It is a way of ensuring that Baby boomers do not worry about storing precious metals at home because it could be risky. Bars, bullion coins and other valuable products from precious metals are on sale at specific banks and approved sellers.