As baby boomers enter retirement and move through their senior years, the financial pressures they face are becoming more apparent. With rising costs in nearly every area of life, many boomers may find themselves unable to afford the lifestyle they had hoped for. Whether it’s due to soaring healthcare costs, higher prices for everyday items, or the need to downsize, many boomers are feeling the strain.
Experts predict that in the next decade, several big-ticket items, as well as everyday living costs, will become increasingly difficult for boomers to afford. Here’s a closer look at 10 things that may be out of reach for many seniors over the next few years.
1. Long-Term Care
One of the biggest financial challenges facing boomers is the cost of long-term care. According to financial advisor Antwyne DeLonde, many boomers simply aren’t prepared for the high costs of nursing homes or in-home care. “The costs were shocking — easily over $100,000 a year — and Medicare didn’t cover much of it,” he shares.
Without long-term care insurance or a financial plan, many seniors will quickly find their savings depleted. For those without resources, this can lead to devastating financial consequences, including the need to rely on Medicaid to cover care, which can be difficult to navigate.
2. Regular Healthcare Costs
While Medicare provides some coverage, many baby boomers will struggle with rising healthcare costs. “Many baby boomers have already noticed shocking increases in their prescription drug coverage,” says Melanie Musson, a financial expert. Even with Medicare, costs are expected to rise every year.
3. Travel
Travel has long been a dream for many boomers who envision globetrotting in retirement. However, with rising airfare and hotel prices, that “trip of a lifetime” might become unaffordable.
DeLonde points out that many of his clients have opted for local road trips instead of long-haul flights to Europe or other international destinations. “Airfare reflects fuel prices and other rising costs,” Musson adds, suggesting that within the next 10 years, many baby boomers may no longer be able to afford vacationing as they once did.
4. Home Repairs and Upgrades
Maintaining a home can be expensive, especially as homes age. DeLonde recalls one client who had to delay fixing a roof because the cost had nearly doubled from previous estimates. As boomers continue to age, they’ll likely face rising maintenance costs for home repairs and upgrades.
From replacing roofs to adding accessibility features like ramps and grab bars, these expenses could become significant financial burdens for retirees living in older homes.
5. New Cars
New cars are becoming more expensive, and boomers are feeling the pinch. The average price of a new car has risen to nearly $50,000, with no sign of prices going down. DeLonde shares that one client was shocked at the high cost of replacing his old sedan and ended up purchasing a used car instead.
“Insurance premiums are increasing across the board, but car insurance rates have been rising even faster,” says Musson. For many seniors, the combination of higher car prices and expensive insurance premiums will make purchasing a new car unaffordable.
6. Groceries
Grocery bills are increasingly straining the budgets of many retirees. According to DeLonde, many retirees now feel that fresh produce is a luxury, and they’ve had to switch to less expensive — but often less healthy — food options.
With inflation pushing up the cost of eggs, meat, and other essentials, many boomers will find it harder to afford groceries in the coming decade. Musson suggests that some may need to rely on government subsidies or assistance programs to make ends meet.
7. Helping Grandkids With College
Boomers have long been known to help support their grandchildren’s education, but with college tuition continuing to rise, this is becoming increasingly difficult. DeLonde shares the story of a grandfather who had to scale back his contributions to his grandchild’s education fund, which weighed heavily on him.
With college tuition outpacing inflation, it’s becoming harder for retirees to contribute to their grandchildren’s education without sacrificing their own financial security.
8. Entertainment and Hobbies
Leisure activities like golf memberships, theater subscriptions, and dining out have become increasingly expensive, and many boomers are being forced to scale back on these luxuries. DeLonde recalls a client who had to cancel her theater subscription because it no longer fit within her budget.
Restaurants are also getting pricier due to rising food costs and labor expenses, meaning retirees may spend more when dining out. These added costs will limit many boomers’ ability to maintain the lifestyle they once enjoyed.
9. Luxury Purchases
High-end items like designer bags, watches, and jewelry are often the first things to go when budgets tighten. DeLonde shares that one client switched from buying his wife a luxury piece of jewelry every anniversary to more practical gifts to save money.
10. Staying in High-Tax Areas
Boomers living in high-tax states may find it increasingly difficult to remain in their homes. DeLonde tells the story of a couple who loved their home but ultimately had to move to a lower-tax state to stretch their retirement savings.
With rising property taxes and the cost of living, many seniors will need to consider relocating to areas with more affordable housing and tax rates to ensure their financial stability.
Staying Ahead of the Curve
Despite these challenges, there are ways for boomers to manage rising costs and make their retirement years more comfortable. Budgeting carefully, downsizing, and seeking out part-time work or consulting opportunities can help stretch retirement savings.
“Retirement isn’t just about saving — it’s about adjusting and finding creative ways to thrive,” says DeLonde. By planning ahead and adapting to changing circumstances, boomers can navigate these financial obstacles and still enjoy their golden years.
