Baby boomers grew up in a stable era of relative affordability. They had stable jobs, earned well, and enjoyed an excellent quality of life. However, the rising cost of living, inflation, etc., can cause them to experience some financial challenges in their retirement years. With no job, boomers will struggle to afford the following 12 things in less than a decade.
Staying in High-Tax Areas
Living in neighborhoods boomers once loved can become financially draining for them, especially if they live in an area with higher property taxes. Since retirees receive a fixed income to manage their daily living expenses, reserving a greater portion of the income for property taxes can put excessive financial strain on their monthly budgets. According to 2022 data by Rocket Mortgage, New Jersey, Illinois, New Hampshire, Vermont, and Connecticut have the highest property taxes. Boomers may find it challenging to afford to live in these states in the coming decade and may have to start looking for more affordable locations.
New Cars
Boomers with a keen interest in driving the latest cars may be unable to afford them in less than a decade. The average cost of buying a new vehicle is approximately $47,542. It is out of reach for boomers living paycheck to paycheck. Those relying solely on fixed income from social security benefits must avoid making unnecessary purchases like these to comfortably live their remaining retirement years.
Personal Wellness & Fitness Services
Personalized wellness and fitness services are popular across America but relatively expensive. Even hiring beginner-level personal trainers can cost you approximately $65/hour, while the more experienced ones can easily cost $115/hour to $150/hour and even higher. As inflation continues increasing the prices of almost every product and service, these charges will soar in the coming years, making them unaffordable for boomers.
Specialized Medical Treatments
Expensive medical treatments are already robbing older Americans of their life savings, and the future doesn’t look bright either. Since the healthcare costs in America are higher than any other country in the world, boomers struggle to afford specialized medical treatments, such as cancer treatment. Some are even forced to take up odd jobs after retirement to cover their treatment costs. If the government doesn’t control the specialized medical treatment costs, it can become unaffordable for many boomers in less than a decade.
Groceries
Boomers with insufficient retirement income or savings may be unable to cover their grocery costs in the upcoming years. Grocery costs have already increased by 1.8% compared to the previous year, the fastest increase in more than a year. The Labor Department revealed that the grocery prices in December 2024 were nearly 28% higher than they were five years ago. If this trend continues, boomers may struggle to afford groceries.
Travel
Most retirees plan to explore new places in their golden years, but the rising travel prices have made it unaffordable for many boomers. Whether you compare the airfares, food prices, hotel charges, car rentals, etc., to previous years, you’ll notice that everything has become expensive. On average, the travel costs today are 4% higher than before. According to the Travel Price Index, overall travel prices have witnessed a massive increase of 16% since 2019. If the trend continues, many boomers won’t be able to afford travel.
Medicare Coverage
Millions of older American adults rely on Medicare for their health insurance. As insurers change coverage terms in 2025, boomers can expect deductibles and prescription drugs to become more expensive. Even the average healthcare premiums are set to rise by 7% in 2025, marking an increase for four consecutive years. The expected changes can make comprehensive medical coverage unaffordable for boomers with insufficient or lower retirement income.
Homeownership
Owning a house was always a part of the American dream, but baby boomers may struggle to fulfill it during their retirement years. The home prices in the American market have doubled over the past decade, with a significant 50% increase in the previous five years alone. It makes it financially impossible for boomers to purchase their own homes. In fact, boomers who already own a property wouldn’t be able to purchase one if they had to buy one today.
High-Speed Internet and Premium Streaming Services
The data plans across the U.S. are some of the most expensive worldwide. Hence, Americans pay approximately 40% more for internet plans than people living in other countries, such as Israel, Japan, France, etc. Boomers living paycheck to paycheck are finding it difficult to afford these expensive costs. Additionally, the constantly increasing subscriptions to streaming services are also exerting financial strain on boomers’ wallets. In the last five years, Netflix and Apple TV+ have increased their subscription prices by 100%, Disney+ by 129%, etc. If prices continue increasing, boomers may be unable to afford them in the upcoming years.
Eco-Friendly Home Upgrades
The rising awareness about environmental concerns has made eco-friendly home upgrades a popular choice among millions of Americans. Many plan to go solar to save money on utility bills. While eco-friendly home upgrades like solar installations can lead to savings over an extended period, the initial investment is a significant barrier to widescale adoption. For example, many boomers cannot afford to install solar panels in their houses because they cost $20,000+. Even energy-efficient appliances such as heat pumps cost a few thousand dollars, making it unaffordable for many boomers.
Private Education for Grandchildren
Education is a fundamental right of every citizen, yet many older Americans are struggling to give their kids and grandchildren quality education because of high costs. Private education institutes are often preferred over government ones because they provide better quality of education, infrastructure, trained teachers, etc. However, since the average cost of private school is $800-$1,700/month, boomers living paycheck to paycheck may soon be unable to afford private education for their grandchildren.
Home Repairs and Upgrades
Home repairs and upgrades are among the biggest expenses impacting boomers’ monthly budgets. Kitchen renovations and additions alone cost approximately $6,200 on average, much higher than the average $4,800 cost in 2021. As labor and material costs continue rising due to inflation and other factors, boomers will find it challenging to afford professional home repairs and upgrades within the coming decade.
