I’m a CFP: 5 Money Pressures Forcing Boomers To Rethink Retirement

Core Insights - Approximately 30% of baby boomers are considering delaying retirement due to financial concerns [1] Financial Pressures - Rising healthcare costs, housing, and everyday essentials are straining budgets due to inflation [3] - Many boomers underestimate the impact of inflation on fixed costs, making cash flow tracking and proactive planning essential [4] - Inflation increases borrowing costs, making debt feel heavier and eroding purchasing power [6] Budgeting Strategies - Boomers are advised to revisit budgets annually, prioritize fixed essentials, and stress-test plans for rising costs [7] - Allocating more towards cash reserves and fixed-income investments can help preserve flexibility [7] - Paying down high-interest debt first is recommended for guaranteed returns [8] Healthcare Expenses - Healthcare costs remain a significant challenge, with a recommendation to plan for these expenses to consume 15% to 20% of retirement spending [9]