Jun 21, 2017 By Gary Boatman for The 4 min read

Almost 15,000 Baby Boomers turn 65 every day. Boomers’ dreams and goals for retirement are much different than those of their parents’.

Many Boomers plan to engage in outdoor activities, explore exotic places and take classes to expand their knowledge. These activities that require money are causing a much higher level of stress than for earlier generations. Not only did the previous generation tend to have less ambitious goals, they had a more secure retirement funding system.

They were more likely to receive pensions from their employers that guaranteed monthly payments. Their monthly living expenses were often less because they did not have to pay things such as cellphones and cable television. Health care costs were much lower also.

A recent Merrill Lynch survey uncovered some interesting facts. Eighty-six percent of Boomers plan a more active lifestyle and 72 percent expected a higher standard of living. These activities will require funds that may not be available. To help offset this shortage, 70 percent plan to keep working during retirement. Earlier generations were more concerned about leaving an inheritance than Boomers. There are big difference in expectations between Boomer men and women. This could cause some interesting family dynamics.

The Boomers long have thought, “I want it all, and I want it now.” They may have to make some adjustments to this concept as the realities of retirement set in. Most retirees spend more money in the first phase of retirement. This is when they have bucket list to fulfill and are the healthiest. This phase requires an increase in spending which may or may not be available in the budget. Boomers may have to re-evaluate this portion of their plan. Many are counting on what may be unrealistic investment returns.

Some Boomers may be over-optimist on how much they will be able to earn by working in retirement. There will be many people interested in the best jobs available during retirement. Also, many retirees are underestimating the cost of health care during retirement. Fidelity did a survey that estimates that a couple will spend $260,000 on out-of-pocket health care expenses during retirement. This includes insurance cost, out-of-pocket co-pays and deductibles. It does not include anything for long-term care cost.

Boomers have several things they can do to make retirement enjoyable and less stressful. Plan realistically. Have reasonable expectations reduce stress and disappointment. I have heard of people who work part time as a starter at a golf course and get to play for free. There are different ways to travel that may help reduce cost.

Save more while still working. Prepare for retirement with the end in mind. Controlling cost and saving more a few years before retirement can make a big difference. Not having debts when you are done working will pay big dividends. Also working a little longer can have a big impact. While it may sound great to retire at 60, most people cannot do this. People are usually at their highest income level near the end of their careers. Working another year or two brings in the most money and you have less years you need to make retirement savings last. You can let Social Security grow and reach Medicare age so that you have less out of pocket health care cost.

You worked your whole lifetime for retirement. With proper planning it can be as enjoyable as possible.

Your Financial Future is written by certified financial planner Gary W. Boatman, MBA and CFP, who also wrote the book, “Your Financial Compass: Safe Passage Through The Turbulent Waters of Taxes, Income Planning and Market Volatility.” If there is an area that you would like to see discussed in the column, send your suggestions to gary@BoatmanWealthManagement.com.