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- 9 Things Boomers Are About to Be Priced Out Of (financebuzz.com)
Baby Boomers Face Growing Financial Concerns in Retirement
The baby boomer generation, born between 1946 and 1964, has largely enjoyed economic prosperity. However, rising costs and societal shifts are impacting their financial security as they approach retirement. Several key areas are causing concern:
Retirement Savings and Investments: Inflation and stock market volatility are eroding retirement funds. The American Association of Retired Persons (AARP) reports that over half of boomers may have to rely primarily on Social Security, potentially leading to a retirement crisis as many struggle to afford basic living expenses.
Healthcare and Prescription Medication: The increasing costs of healthcare, insurance premiums, and prescription drugs are making necessary medical care less accessible. A National Institutes of Health study suggests systemic reform is needed to support the healthcare needs of retiring boomers.
Long-Term Care: The cost of long-term care facilities and in-home care is becoming prohibitive for many boomers. With younger generations also facing financial constraints, a crisis looms as the demand for long-term care rises.
Housing: Soaring home prices and rental rates are impacting boomers’ ability to downsize or maintain their current homes. Many are finding that selling their homes won’t provide sufficient funds for retirement, while staying put means facing escalating repair costs.
Travel and Leisure: Rising travel costs are making vacations, especially international trips, less affordable. Data from Deloitte shows boomers are frequent travelers, but rising costs and safety concerns may impact their retirement travel plans.
Home Repairs and Upgrades: Many boomers are stuck in a difficult situation: unable to afford the upkeep of their homes but also unable to afford to sell. The rising cost of home repairs is adding to their financial burden.
New Cars: The rising cost of new vehicles is impacting boomers accustomed to regular upgrades. An Axios study indicates that new car prices have significantly increased over the past decade, potentially forcing older drivers to keep their cars longer.
Groceries: Grocery prices have seen a substantial increase since 2019, impacting boomers’ budgets and raising concerns about affordability during retirement.
New Technology: Keeping up with rapidly evolving technology is becoming increasingly expensive. This poses a challenge for boomers on fixed incomes who may struggle to afford upgrades as new technologies emerge.
The Bottom Line: While the baby boomer generation is considered the wealthiest in history, systemic issues are threatening their financial security in retirement. Many are seeking ways to boost their finances as they face the prospect of a less comfortable retirement than they had anticipated.
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