In the coming years, a significant wave of baby boomers is set to retire, with a record-high of 4.1 million Americans turning 65 in 2024. While some individuals may choose to continue working due to financial constraints or a desire to remain employed, experts predict an increase in retirement numbers as baby boomers reach the "peak 65 zone". The Alliance for Lifetime Income's Retirement Income Institute projects that the number of daily retirements will rise from around 10,000 per day to over 11,200. This surge in retirees is expected to continue until 2027.

During their working years, baby boomers had ample time to save and invest. However, there are several financial strategies that they may have overlooked. Financial advisors recommend five tips to help near-retirees maximize their money and ensure longevity in their golden years.

Firstly, individuals should consider a Roth conversion. Although Roth IRAs are typically associated with younger workers due to income restrictions, it is still possible to benefit from a Roth conversion, which involves converting a traditional IRA into a Roth IRA. By doing so, retirees can enjoy tax-free withdrawals during their retirement years and avoid required minimum distributions. This strategy adds tax diversification to their financial plans and reduces their overall tax bill.

Secondly, optimizing taxable accounts is crucial. While 401(k)s and IRAs offer tax advantages, taxable accounts play a significant role as well. Determining which accounts to tap into first is essential. Withdrawals from taxable accounts are taxed at the capital gains rate, which can be more favorable compared to the ordinary income tax rate applied to 401(k) withdrawals. Having a combination of different accounts allows for a strategic withdrawal strategy, which can help weather the uncertainties of the tax landscape in retirement.

Thirdly, delaying the start of Social Security benefits is recommended. Although some individuals become eligible for benefits at age 62, financial advisors advise postponing the start of Social Security until age 70, or at least until reaching the full retirement age. Delaying provides a higher benefit amount and helps lower taxable income. Taking advantage of the delayed retirement credit can significantly impact the size of the benefit received. It is possible to view projected benefit amounts on the Social Security Administration's website.

Furthermore, fine-tuning the retirement budget is crucial. Instead of fixating on reaching a specific savings goal, individuals should focus on creating a comprehensive retirement budget that includes fixed costs (such as mortgage or rent, insurance, and healthcare), discretionary costs (such as travel and dining out), and planned future costs (such as home repairs and long-term care). Advisors emphasize the importance of crafting a thoughtful and conservative budget, while also being open to adjustments as expenses and circumstances change throughout retirement.

Lastly, in addition to financial considerations, experts stress the need for a holistic life plan. Creating an "unretirement plan" entails thinking about how retirees will stay mentally and physically healthy, exploring interests and hobbies, and maintaining social connections. Having a clear vision for post-retirement activities and goals can lead to a happier and more fulfilling retirement.

Retirement is a significant milestone for baby boomers, and maximizing financial strategies is essential to ensure a comfortable and enjoyable transition into this new phase of life. Following the advice of financial advisors to consider a Roth conversion, optimize taxable accounts, delay Social Security, fine-tune the retirement budget, and create an unretirement plan will help baby boomers make the most of their golden years.