The impending silver tsunami of retirees is set to hit its peak this year, as a record-high 4.1 million Americans turn 65 in 2024. While many are bidding farewell to the workforce, not all will retire, with some facing financial constraints and others choosing to continue working despite having the means to retire. However, experts predict a significant increase in the number of retirees, from an average of 10,000 per day over the past decade to over 11,200, as baby boomers reach the "peak 65 zone." This surge is projected to continue until 2027, according to the Alliance for Lifetime Income's Retirement Income Institute.

To help those nearing retirement make the most of their golden years, financial advisors offer five key tips:

1. Consider a Roth Conversion: While most people are familiar with 401(k)s and IRAs, financial plans should also include a Roth IRA. Even if the income cap for direct contributions is surpassed, a Roth conversion can still provide benefits. This strategy involves converting a traditional IRA into a Roth IRA, resulting in tax-free withdrawals in retirement (subject to meeting certain requirements) and no mandatory minimum distributions during one's lifetime. Opting for a Roth conversion adds tax diversification and can potentially reduce lifetime tax bills.

2. Optimize Your Taxable Account: Besides 401(k)s and IRAs, taxable accounts play a vital role in tax diversification. Understanding which accounts to tap into first is crucial. While retirement accounts have tax benefits, taxable accounts offer flexibility without contribution limits, withdrawal penalties, or required distributions. Maintaining funds in a brokerage account provides strategic options for withdrawals, as only gains are taxed, in contrast to the entire withdrawal from a 401(k). Diversifying the tax treatment of accounts helps manage income during retirement and navigate the uncertainty of the tax landscape.

3. Delay Social Security: Financial advisors urge individuals to postpone taking Social Security benefits until age 70, or at least until reaching full retirement age if possible. Delaying benefits increases the benefit amount and reduces taxable income, as it allows retirees to deplete their other retirement savings first. This commonly overlooked opportunity in financial planning can significantly impact the size of the Social Security benefit received. Individuals can calculate their projected benefit amount using the Social Security Administration's website and assess the advantages of delaying.

4. Fine-Tune Your Budget: While reaching a specific retirement savings "number" is often emphasized, closer attention should be given to the numbers within the retirement budget. These can be categorized into fixed costs (such as mortgage, insurance, and healthcare), discretionary costs (including travel and dining out), and planned future costs (such as home repairs or long-term care). A thoughtful and conservative budget, created with the guidance of a financial advisor, helps prepare for contingencies. Adjustments can be made over time, as expenses change in retirement. It's important to remember that the retirement phase can last over 30 years, allowing for corrections if necessary.

5. Make an 'Unretirement Plan': While financial and tax strategies are essential, developing a holistic life plan for retirement is equally important. Considering how to keep the mind and body healthy, engaging in volunteer work or part-time employment, and maintaining meaningful social connections are crucial aspects of a fulfilling retirement. Mark Walton, in his book "Unretired: How Highly Effective People Live Happily Ever After," suggests creating an "unretirement plan" that identifies personal interests and how time will be dedicated in retirement. A clear vision promotes a smooth transition from a financially secure retirement to a genuinely happy one.

As the silver tsunami continues to reshape the retirement landscape, these financial tips can help baby boomers navigate the path to a fulfilling and secure future. Making informed decisions about tax strategies, budgeting, and life plans can maximize financial well-being and ensure that retirement years are truly golden.