Studies show that Baby Boomers will retire differently than generations past. They will retire from their jobs around age 65 but alternate between periods of leisure and work well beyond their official retirement date. Surprisingly, the main reason for this change is due to the desire for mental stimulation and staying "young." Of course, the financial cost of retirement is the second major consideration. Here are seven tips to help you create the retirement of your dreams.

1. Decide on the type of retirement you want. Do you want to stop working altogether at a set date? Or do you want to work part time or start a business? If you stop working, how will you spend your time? Will you travel or pursue some sports or hobbies? Maybe you want to work a little, travel a little. One word of caution: Decide how you will spend your time during retirement now before you retire. Not having a purpose is very detrimental to your physical and emotional well-being.


2. Make two budgets. Title one budget "Needs" and the other "Needs and Wants." This will give you an idea of the range of your financial requirements during retirement.


3. Check out an online retirement calculator. Get the facts early. Most of these calculators ask you how old you are now, when you wish to retire, how much you have saved, and how much you want to have each year during retirement. And, of course, they will calculate how much you need to put away each month to get you to your goal. If you wish to keep working even part time during your retirement years, you may be surprised to find that you are closer to your financial retirement goals than you had imagined.


4. Consider relocation to a more affordable area. This may or may not be your ideal, but more and more families are migrating from expensive populated areas to more affordable rural locations to ease their financial burden and embrace a slower-paced lifestyle.


5. Turn a hobby into cash. You know you've probably thought about doing this before but perhaps you were afraid to take the risk. Or you were too busy raising your family or working your day job. If it doesn't cost too much to set up, why not give it a go? You will have the time now. And time is a very valuable commodity.


6. Become a part-time consultant or start an MLM business. If you've worked in a field for a long time, you are an expert. Individuals and companies would probably pay you handsomely for your expertise. Why not put your name out there for some part-time consulting work where you control the pace and amount of work you take on. Many established companies such as Avon offer fun multi-level marketing business models. If you're very sociable, this could be a natural fit for you during retirement.


7. Skip the cruise and travel like a backpacker. Maybe now is the time for adventure travel. And it's way more affordable and flexible than conventional travel. Just pick a country where your currency is stronger, simplify your belongings into a large backpack, and go. In some countries in Southeast Asia you can stay in private bungalows for around $10 a day or less.

Besides keeping in relatively good health, the key to a satisfying retirement is to balance practicality with creativity, and pace yourself. This can be a time of great self-exploration. Remember the amusing words of George Burns, "Retirement at sixty-five is ridiculous. When I was sixty-five I still had pimples."