Did you know? More and more older-generation Americans continue to overshadow the nation’s population. A few years ago, baby boomers, or those aged 65 or older, represented 17.3% of all American people. A large number at hand, that statistic continues to grow each year.

With 65 being the retirement age and an era of celebration and hard work, this massive wave of aging folks is not always an exciting period in time. Surely, while it is a moment of well-deserved rest and new hobby searching, it is also a serious checkpoint of one topic we all have dreaded: financial readiness. 

“4 million Americans turning 65 should mean 4 million Americans entering what should be their golden years. However, the reality for most is far from ideal, as data reveals that many are financially unprepared for retirement. This isn’t a reflection of a lack of effort but rather a widespread misunderstanding of how much savings are truly needed to sustain a comfortable retirement,” says Michael A. Scarpati, CEO of RetireUS, a financial planning company.

Even so, more data continues to back up Scarpati’s philosophy of the retirement age. According to a recent survey from the Transamerica Center for Retirement Studies, only 27% of baby boomers are confident they will retire with enough money. Additionally, the same source claims that only 38% of these adults have a backup plan for income if forced into retirement sooner than expected.

For many in the baby boomer generation, they were also raised with a strong belief that Social Security would be their financial safety net. But that net is fraying if no legislative action is taken, says Scarpati. That could translate to thousands of dollars in lost income annually for retirees who depend on Social Security as their primary source of support.

“Social Security reserves are projected to be cut by 2035–unless there’s congressional intervention–which means the stakes are higher than ever. It’s critical for baby boomers to have a clear understanding of their financial needs and take steps to safeguard the savings they’ve worked so hard to accumulate. Proactive planning and protection are key to ensuring stability during retirement,” he explains.

But the shift is not just about the money. It is also about longevity, considering Americans are living longer and needing more care than previous generations. A 65-year-old today has a 69% chance of living over 80, according to the Social Security Administration. As a result, folks have not planned for this longevity, ultimately impacting retirement planning. 

So, what is the solution to retirement? 

As many financial experts would suggest, it is never too late to start your financial journey. Proactive planning early on, such as reviewing pensions, understanding employer-sponsored retirement benefits, optimizing Social Security timing, and speaking with a fiduciary financial advisor, can go a long way in creating stability.

Another step forward in planning for retirement might even be something as simple as deferring to financial advisors on social media. Oftentimes, guidance on these platforms can be inaccurate and unregulated, further contributing to the problem of retirement. As older adults continue to listen to financial advice online, they risk the full scope of the financial picture.

Ultimately, retirement planning is not all fun and games, but it is necessary for long-term readiness. Without a plan, retirees may find themselves outliving their savings or facing difficult choices in their later years.

If you are considering retiring, ask yourself this: Do I have a safe financial plan in place? If the answer is “no,” hold on! This is your call to start protecting your retirement savings in order to live a peaceful and happy life post-employment.