Two-thirds of workers age 55 or older have less than $100,000 in their retirement accounts. If you draw 4% a year from your savings that $100K will not last long. And an estimated 60% of retirees 65 plus get the bulk of their retirement income from Social Security. The average payment is about $1,000 a month. That won't get you much. And 56% of workers who are already retired have less than $50,000 saved to last them for the rest of their lives. 

As many seniors look down the road they realize their savings/pensions or social security checks won't keep up with inflation.

Seniors who realize they will not be able to continue living the lifestyle they are accustom to while fully employes will have to face some tough choices.

One solution: Men and women over 50 who own their own homes and lived in cities with high real estate prices during their working years opt to sell their large expensive homes and end up with enough equity to pay cash for a modest home. Many who choose to do this will have money left over to supplement their retirement income.

Others are choosing to relocate to less expensive parts of the country, while others look outside the country.

Many seniors find that replacing expensive hobbies and travel with cheaper hobbies and outings are an acceptable alternative. There are many local parks where they paint or take digital photographs. They hunt for cheap restaurants where they have additional savings using coupons. Many make extra income with a home business or find a part time job.

Despite these rather unsettling statistics, studies show that more than 60% of seniors find retirement very satisfying.

EXAMPLE: Steve and his wife love to travel but realize that when they retire in a few years, expensive senior travel will be out of their budget. So, in preparation for retirement they bought a great little cabin in a place for vacations. "If we are never able to take cruises or long trips, we'll be very happy here. This is my favorite place in the world anyway so I don't feel like I'd be missing anything. And because it's located in a popular area for family vacations we'll rent it out for extra income when we're not there."

New retirees are discovering that even if they weren't fortunate enough to have a 5 million dollar nest egg, there are options. But if you want to live the same retirement lifestyle you currently enjoy, you will probably need more that you think. So plan ahead, and if you do need extra money take on a part time job, start a home business or monitize a hobby. Whatever you decide, I am sure of one thing. Baby boomers are resourceful and will make it work.