Financial Survival Tips for Older Workers in a Bad Economy

The economic downturn has been really tough on many people throughout the world. The youngest workers and baby boomers have been hit harder than most other people. Planning for retirement has always been difficult for many people. You will need to be even more disciplined now that the economy has faced so many problems. Here are some things you will need to take into consideration.

Keep Your Spending Under Control!

Most people roll their eyes when you tell them to spend more frugally; however, few people will ever admit to themselves how much they actually spend. A new study from the National Center for Policy Analysis has found that most older workers are spending a higher percentage of their money on disposable income than in previous years, even though their incomes haven’t increased.

Celebrity financial advisors such as Suzie Orman keep telling people they need to cut their spending and save more for retirement. This is essential advice when you are reaching your golden years. Stop spending as much money on Starbucks and start putting more into your 401K.

Be Prepared for a Forced Retirement

Many baby boomers have been forced to retire earlier than they expected. They often plan on working well after they turn 65; however, there may be a couple of reasons why that may not be an option. Save your money as if you plan to retire five years earlier than you actually do.

First of all, you may be unexpectedly laid off from your job. Baby boomers have found it can be very difficult to get a job in this economy. They are also often the first people to get fired when a company needs to lay people off, because they tend to earn more. Their boss may also believe they are going to leave soon anyway. I personally know baby boomers who were looking for work for three years before deciding they had to retire.

You may also experience health problems that force you into retirement. You may have the option of switching fields, but that is often easier said than done.

There is another benefit to planning for an early retirement. You may find your investments don’t perform as well as you expected. You will be in better financial shape and be able to retire on time if you start saving more aggressively.

Make Sure You Have the Right Insurance

You will need to start looking into new types of insurance after you turn 50. Here are two types of insurance you should take a look at as you get older:

·Long-term-care insurance. Long-term-care insurance will help you cover your stay at a nursing facility.

·Liability insurance. Only about a third of older citizens have enough liability insurance to cover them if they have a disaster. Make sure you have enough liability insurance so you don’t lose your entire savings if you get sued in an emergency.

Speak with a qualified insurance specialist to determine what plans will be best for you.

Be Careful While Planning for Retirement

This is a difficult economy and many people are struggling to survive. The prospects are particularly bleak for many older workers who may no longer be able to work. Make sure you realize the challenges you may face in this economy and plan accordingly. You will be glad you did when it is time to retire.

Kalen is a financial writer and Forex entrepreneur who follows the advice of Warren Buffet, Peter Lynch,

John Studzinski and other experts.

Other articles: Older Workers, There’s Hope: Study Finds Employers Like You Better Than Millennials – Forbes

10 myths and facts about older workers

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