9 Things Boomers Are About to Be Priced Out Of

The end of World War II brought a sweeping boom in the birth rate, which resulted in the baby boomer generation born between 1946 and 1964. But while boomers have enjoyed economic prosperity much of their lives, a few things are going south now.

Rising living costs and inflation are about to price the generation out of things they previously didn't question being able to afford. These shifting societal changes are now impacting boomers' lifestyles and financial security, making it more critical than ever for them to stop wasting money.

Here are a few things that have boomers revisiting their budgets.

Due to inflation and stock market fluctuations, it's becoming harder for boomers to sustain their retirement funds at the level they expected.

According to the American Association of Retired Persons (AARP), more than half of the population will have to rely on Social Security as a source of income. This is predicted to be a retirement crisis in the upcoming years, as many will struggle to afford basic living requirements.

Rising healthcare costs, insurance premiums, and prescription drug prices make it more difficult for boomers to afford necessary medical care.

According to a study by the National Institutes of Health, the current systems in place will not be able to support the heavy influx of boomer retirements. Systemic reform will be necessary if seniors want to receive adequate medical care.

The increasing cost of long-term care facilities and in-home services is pricing many boomers out of quality care options.

Millennials and Gen-Xers also don't have the means to support their parents' and grandparents' future long-term care, so a predictable crisis is headed our way as the oldest boomers near 80 and the demand for long-term care rises sharply.

Skyrocketing home prices and rental rates are putting homeownership and affordable living out of reach for many in this generation. Boomers looking to cash in on their home equity are discovering downsizing is not a practical option because it wouldn't leave them with enough money for retirement.

Banking on home equity just to find a smaller and less desirable house would be a lateral financial move, but it's also keeping boomers in larger homes longer than they intended, creating a lose-lose situation where they can't afford to stay but also can't afford to move.

Luxury vacations and leisure travel, especially international trips, are becoming less affordable due to rising airfare, accommodations, and general costs.

A 2024 data sampling from Deloitte indicates boomers are a significant portion of travelers; however, rising costs and increasing safety concerns could impact plans to travel during retirement.

Boomers planning on selling their larger homes after their children are grown and moved out are discovering they can't afford to sell them, but also can't afford to keep up with repairs.

The cost of hiring others to do the work is rising rapidly, and doing larger home repairs yourself is a young person's game.

An Axios study estimates that new cars in 2024 will cost an average of $48,750, up from $32,250 a decade ago. Boomers accustomed to regular vehicle upgrades might sacrifice that luxury as prices continue to rise. This problem could be significantly magnified if import tariffs are applied, forcing older drivers to hold on to cars longer.

Post-pandemic clarity has shed the harsh light of reality on food prices: They aren't going back down. It wasn't supply-chain disruptions, and it wasn't inflation — it was always just corporate profits.

Grocery prices have risen 31% since 2019. Boomers haven't budgeted their savings for skyrocketing grocery prices, and if this increase continues, it will be dire as they head into retirement.

Boomers have grown up adapting to new technology. They've gone from watching television in black and white, to color, to cable, to VHS tapes, to DVDs, to Blu-ray, and now to streaming. They've gone from Pong on Atari to Baldur's Gate 3 on PlayStation 5.

Keeping up with new tech is becoming more financially draining as the speed of new releases increases, and heading into retirement on a fixed income could drastically impact financial ability to upgrade as new technological discoveries are made and implemented into daily life.

Collectively, the baby boomer generation is the wealthiest to have ever lived. Affordable housing and strong financial markets set them up for success as long as they worked hard and saved reasonably for retirement.

Now, as the generation edges into their golden years, many are finding that the social contract of a comfortable retirement may not be there for them because of systemic problems that have run unchecked. 

This realization has left many approaching retirement scrambling for additional ways to build wealth, and some even fearing they won't be able to afford retirement at all.