Millennials often blame boomers for bad financial advice, but when it comes to retirement planning, boomers actually got a lot of things right. While younger generations struggle with rising costs, student debt, and uncertain markets, there are still valuable lessons to learn from how boomers prepared for retirement.
Here are 15 things boomers did right about retirement that millennials should pay attention to.
1. They Took Retirement Seriously Early On
What Boomers Did Right:
- Most started saving early, even if it wasn’t a lot.
- They prioritized pensions, 401(k)s, and IRAs rather than waiting until later in life.
What Millennials Can Learn:
- The earlier you start, the easier it is—compound interest does the heavy lifting.
- Even small contributions add up over decades.
2. They Lived Below Their Means
What Boomers Did Right:
- Many boomers avoided lifestyle inflation and didn’t feel the need to keep up with the Joneses.
- They valued savings over luxury spending.
What Millennials Can Learn:
- Cut unnecessary expenses and save aggressively—future financial freedom is worth more than short-term luxuries.
- Don’t fall for social media-driven lifestyle pressure.
3. They Bought Homes Instead of Renting Forever
What Boomers Did Right:
- Most boomers bought homes early and stayed in them long enough to pay them off.
- Homeownership built wealth over decades.
What Millennials Can Learn:
- If you can afford it, buy a home sooner rather than later to lock in long-term equity.
- Renting has its place, but long-term homeownership remains one of the best ways to build wealth.
4. They Used Pensions and Employer Benefits Wisely
What Boomers Did Right:
- Many boomers took full advantage of pensions and didn’t job-hop as much.
- They maximized employer benefits like 401(k) matches and health insurance.
What Millennials Can Learn:
- Job-hopping too often can cost you retirement benefits (stock options, 401(k) vesting).
- If your job offers a 401(k) match, max it out—never leave free money on the table.
5. They Didn’t Rely on Gig Work
What Boomers Did Right:
- They worked stable, full-time jobs with benefits rather than relying on gig work with no retirement plan.
- Company-sponsored retirement plans helped them save consistently.
What Millennials Can Learn:
- If you’re freelancing or in gig work, you must create your own retirement plan (Roth IRA, SEP IRA, Solo 401(k)).
- Relying solely on gig income is risky—try to build financial stability.
6. They Didn’t Rack Up Massive Student Debt
What Boomers Did Right:
- College was cheaper, but they also worked through school, attended in-state schools, or chose affordable degrees.
- Many boomers didn’t see college as the only path to success.
What Millennials Can Learn:
- Avoid overpaying for degrees with low earning potential.
- Consider trade schools, certifications, or employer-paid education as alternatives.
7. They Saved More Aggressively
What Boomers Did Right:
- They saved at higher rates than younger generations.
- Many boomers aimed for 15–20% of their income in retirement accounts.
What Millennials Can Learn:
- Saving 5% won’t cut it—aim for at least 15% of your income if possible.
- Start maxing out Roth IRAs and 401(k)s early to build long-term security.
8. They Invested Long-Term (Instead of Trying to Get Rich Quick)
What Boomers Did Right:
- They didn’t panic sell during downturns (like the 2008 crisis).
- They focused on long-term investments like index funds, not gambling on crypto or meme stocks.
What Millennials Can Learn:
- Don’t chase get-rich-quick schemes—consistent investing beats speculation.
- Stay invested even when the market goes through downturns.
9. They Paid Off Their Mortgages Before Retiring
What Boomers Did Right:
- Many boomers entered retirement debt-free, with no mortgage payments.
- Not having a mortgage meant lower living expenses in retirement.
What Millennials Can Learn:
- If possible, aim to pay off your home before retiring.
- If you plan to rent forever, make sure your investments generate enough income to cover future housing costs.
10. They Valued Employer-Provided Healthcare
What Boomers Did Right:
- They stayed in jobs long enough to keep good health benefits.
- Many planned for healthcare costs before retiring.
What Millennials Can Learn:
- Healthcare is a huge expense in retirement—start planning now.
- If you have a Health Savings Account (HSA), max it out for tax-free medical expenses.
11. They Lived in One Place Instead of Constantly Moving
What Boomers Did Right:
- They bought homes and stayed put, avoiding moving-related costs.
- They built equity and financial stability by keeping housing costs low.
What Millennials Can Learn:
- Moving frequently is expensive—if you buy, commit long enough to see financial benefits.
- Avoid renting forever if you can afford to buy in the right market.
Read More: The 15 Most Overrated Places to Retire (And What’s Actually Worth It)
12. They Planned for Inflation
What Boomers Did Right:
- They understood that $1 million today won’t be worth the same in 20–30 years.
- Many invested in stocks, real estate, and inflation-protected assets.
What Millennials Can Learn:
- Plan for at least a 3% annual increase in expenses.
- Keep part of your portfolio in growth assets to outpace inflation.
Read More: 10 Sneaky Ways Lifestyle Creep Is Draining Your Wallet
13. They Used Pensions Wisely
What Boomers Did Right:
- Those with pensions didn’t withdraw early or mismanage their payouts.
- They structured their finances around long-term stability.
What Millennials Can Learn:
- If you don’t have a pension, build one for yourself through investments.
- Don’t withdraw retirement funds early unless absolutely necessary.
Read More: How I Saved $10,000 Almost Without Noticing
