4 Trends in Retirement Age by 2024: Saving Money Every Month.

The variables for a comfortable retirement change over time, making planning or continuing your retirement challenging. These changes range from which cities are best for retirees to how to better optimize your retirement savings. Here are four retirement trends to watch for in 2024 that could save you money each month.

1. The best states for retirement

In 2022, Florida, Michigan, Arizona, Georgia and North Carolina were among the best states for retirees despite ever-increasing inflation and cost of living. In 2024, Ohio and New Hampshire have proven themselves ideal for retirees because of criteria such as health care affordability, housing costs, and overall population satisfaction. Of course, that doesn't mean the best states for retirees can't change again in future years.

2. Retirement Cruises

More retirees than ever before are spending their time on cruise ships. Like many other commercial sectors, not all cruise lines are created equal. Some are more expensive, although retirees benefit from the convenience of provided meals and accommodations; some cruise ships even offer quality medical services. Whether you are interested in a permanent cabin or just an extended stay, you need to carefully consider your insurance and taxes, as well as the cost of maintaining your other housing. You can purchase travel medical insurance while on a cruise if you are not covered by Medicare. However, even the best medical services may be inadequate for those with certain chronic conditions. Retirees are also becoming more adventurous on land, participating in tours, hikes, and other outdoor activities.

3. Reducing expectations from real estate

Older people are looking for smaller housing options, especially those located in friendly neighborhoods. Such opportunities and living communities for seniors are available across the country, but you need to make sure that your choice fits your budget.

4. Pension accounts

After 2025, federal tax rates will increase. This means that 2024 is the optimal year for converting to a Roth IRA, allowing you to lock in your rates. It is still necessary to monitor your tax bracket over the long term. Financial advisors recommend making partial conversions to a Roth IRA over several years to avoid falling into a higher tax bracket. There is also the Secure Act 2.0, which comes into effect this year with a number of changes to make retirement savings easier for employees. For example, employers can offset student loan payments through contributions to a retirement plan. Additionally, employers are also required to automatically enroll eligible employees in new 401(k) or 403(b) plans with participation rates ranging from 3% to 10%. Finally, designated Roth accounts in 401(k) or 403(b) plans will not have required minimum distributions (RMD) for those aged 73 and older.