Gone are the days when retirees were satisfied with just "getting by" in retirement. Now, boomers see retirement as an opportunity to pursue hobbies and live lives that they had put on hold because of work, or simply because they were cautious about depleting their nest eggs.
For many, retirement is the time to buy trendy gadgets, take trips to favorite destinations and generally enjoy the fruits of their labor. Boomers also want a more active life in retirement than previous generations.
More travel, golf, tennis and volunteerism will mark the retirement activities of the boomer generation. More activity means more spending. And for many, buying that luxury car is an indulgence that can no longer be put on hold. This change in life will undoubtedly cost more than the low-key pre-retirement boomer life. The high cost of health care, a longer life expectancy also means increasing healthcare costs.
Medicare premiums continue to increase each year as do the costs of private insurance. Employers are limiting their offerings of health insurance benefits for retirees. In the past, companies would provide health insurance for retirees and their families but now most larger employers are minimizing contributions to retiree healthcare insurance, or eliminating the benefit altogether.