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Retirement on a budget is no less enjoyable

Baby boomers have caused a lot of people to re-think what retirement means in terms of health and activity, but they have also changed the way people look at retirement from a financial standpoint - though for some it was not on purpose.

Jake Eisenwasser recently turned 65, and he and his wife have been doing things a little bit differently than the previous generation of retirees, the Chicago Tribune reports. Eisenwasser works as a part-time tutor for high school physics students, and his wife also holds down a part-time job.

He was forced to leave his career a few years earlier than expected, but he and his wife have been able to live a pretty comfortable retirement thanks to smart planning. They took advantage of a since-closed Social Security loophole and have been taking vacations on off-peak seasons.

"I feel healthy and active," Eisenwasser told the Tribune. "When I look in the mirror, I say, 'Not bad for 65.'"

Facing retirement on a tighter budget is something that is not limited to just Eisenwasser. While some people might not want to work into retirement, doing so may actually be a blessing in disguise. The Denver Post reports that working longer gives boomers more time to build their savings, and recent survey revealed that 41 percent of people have increased their 401(k) contributions this year - compared to just 31 percent in 2010.

Investment adviser Charlie Farrell says that retirees should expect to need to have saved around 10 to 12 times their annual income by the time they retire, according to the Post.

A recent study conducted by the Transamerica Center for Retirement Studies shows just how many boomers are planning to work past the age of 65. In fact, 24 percent of respondents said they were expecting to work until they're 70, while 14 percent say they plan on never retiring.  

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