10 Things We May Struggle to Afford in Our 60s and Beyond

Boomer finances aren’t what they used to be. That fancy coffee you picked up this morning? It probably costs what a nice dinner did just a few years back. And bread? Might as well come with a financing plan these days.

We are all feeling the squeeze, but to older generations, it’s a particular wallop. Everything keeps going up, gadgets are always up for an upgrade, and even the basics start to feel like luxuries. What’s next? Here’s a breakdown of the biggest financial struggles Boomers face and actionable retirement planning strategies to stay ahead.

1. Long-Term Care Costs

One of the largest hurdles in budgeting for retirement is long-term care. Antwyne DeLonde, a financial advisor, shared a story about a client struggling with nursing home expenses. “The costs were shocking, easily over $100,000 a year, and Medicare didn’t cover much of it,” he said. “For boomers without a plan for long-term care, it’s a real risk that could eat into their savings quickly.”

Planning for long-term care is a critical step in mitigating the financial struggles of retirees. The rapid escalation in hospital care costs over the past three decades has reached such alarming levels that it poses a serious threat to the stability of the economy.

• For perspective, the daily cost of a hospital bed, which was just $16 in 1950.
• In 2022, this price skyrocketed to approximately $3,030 per day nationwide. However, this figure fluctuates significantly depending on the state. These variations are influenced by factors such as insurance coverage, hospital-specific charges, and inpatient room rates.

2. Skyrocketing Healthcare Costs

Healthcare is a significant challenge for many retirees. Even with Medicare, increasing premiums and out-of-pocket expenses are stretching budgets thin.

DeLonde, a financial expert, noted, “One retired teacher I worked with shared how she had to start cutting back on leisure spending just to cover her rising healthcare premiums.”

Prescription drugs and supplemental insurance plans are also becoming harder to manage. Addressing these rising costs should be a key focus in retirement planning strategies.

3. Inflation Effects on Boomers’ Travel Plans

Traveling is often a top goal for retirees, but the effects of inflation are making those dreams harder to achieve. “I’ve had so many clients dream of traveling the world after retirement. But now, with rising airfare and hotel costs, that ‘trip of a lifetime’ feels out of reach for many,” DeLonde shared. High airfare and hotel costs are forcing Boomers to rethink their retirement bucket lists.

• In 1950, a family vacation cost approximately $500 to $1,000 in the U.S., covering travel, accommodation, and meals.
• In 2025, the average vacation budget is around $5,051.

4. Home Repairs and Aging Costs

Aging homes come with their own financial challenges. “I remember a client who delayed fixing their roof because the cost had nearly doubled from what they expected,” DeLonde explained.

From major repairs to accessibility upgrades, the costs of aging in place can quickly overwhelm a retirement budget.

5. Car Costs for Retirees

For baby boomers, purchasing a car now feels like a luxury. “I had a client call me in disbelief after shopping for a car to replace his aging sedan. He ended up buying used but still felt like he overpaid compared to just a few years ago,” noted a financial expert.

• As of January 2025, the average price of a new vehicle has climbed to $49,000 ($48,978 if to be clear).
• This is an astonishing 32 times the cost of a car in 1950, which was just $1,510. This steep increase is driving many seniors to turn to the used car market. However, even used vehicles are perceived as overpriced, compounded by the rising cost of insurance premiums.

Transportation costs are quickly becoming a significant concern for retirees, making careful budgeting essential to navigating these financial challenges.

6. Grocery Prices and Daily Expenses

Everyday essentials like groceries are becoming harder to afford for retirees. Fresh produce feels like a luxury now. Many people are turning to less nutritious options just to save money.

As prices for staples like eggs and meat continue to rise, some retirees may rely on subsidies to make ends meet.

• In 1950, the average American family spent approximately $814 annually on food, which equated to about 22% of their income at that time.
• By October 2023, this expenditure had risen to around $1,080 per month, reflecting increased food prices and changes in consumption patterns.

7. Helping Grandkids With College

Many Boomers dream of supporting their grandchildren’s education, but rising tuition is forcing tough decisions. Balancing family support with retirement goals is a common financial struggle for retirees.

The cost of college tuition has increased dramatically over the decades:

• 1950: The University of Pennsylvania charged $625 per academic year for undergraduate tuition, more than $8,100 in today’s dollars when adjusted for inflation.
• 2025: The average annual college tuition in the U.S. is $35,720, a nearly fivefold increase compared to the inflation-adjusted cost of tuition in 1950.

8. Budgeting Tips for Entertainment and Hobbies

Hobbies and entertainment, those little joys in life, are getting pricier too.

“I had a client tell me she had to give up her theater subscription because it just didn’t fit the budget anymore,” DeLonde said.

Dining out and leisure activities are becoming harder to justify, but careful budgeting tips can help retirees enjoy these moments without overspending.

9. Luxury Items vs. Essentials

When money is tight, luxury items are the first to go.

“One client used to buy a nice piece of jewelry for his wife every anniversary but recently switched to more practical gifts to save money,” DeLonde recalled.

Prioritizing essentials over splurges is a vital part of budgeting for retirement.

10. Staying in High-Tax Areas

For retirees in high-tax areas, staying in their family home can be unsustainable. “I worked with one couple who loved their family home but ultimately decided to move to a lower-tax state to stretch their retirement savings,” DeLonde explained.

Relocating can be a smart move for Boomers facing rising costs. Yes, retirement comes with its challenges, but with smart planning and the right mindset, it’s possible to thrive.

Budgeting is critical. Track where your money’s going, focus on the essentials, and don’t be afraid to make adjustments. Many retirees are finding part-time work or consulting roles to boost their income.

Retirement isn’t just about saving, it’s about adapting. With thoughtful retirement planning strategies, Boomers can enjoy this phase of life, even with the financial struggles of retirees and the effects of inflation in play.

How to Manage Your Expenses in Retirement

Here’s a key rule for retirement: Don’t treat your savings like a checking account. Sure, it’s tempting to dip into it for daily expenses. But doing so could drain your funds faster than you think. Instead, set up your savings to provide a steady monthly income that lasts your whole life.

Once you’ve got your retirement paycheck system in place, match your spending to that income, and any other sources like Social Security, pensions, or annuities. This way, you’ll avoid burning through your money too quickly.

How do you start?

• Calculate your total retirement income.
• Use it as a guideline for your living expenses.

Break your costs into two categories:

• Essentials: housing, utilities, healthcare.
• Extras: travel, hobbies, dining out.

Don’t forget about occasional expenses like property taxes or insurance. If your spending is higher than your income, cut back on the extras first. Need more savings? Consider downsizing your home or finding other ways to reduce bigger costs.

How to Manage Your Income in Retirement

A steady income stream is your financial lifeline in retirement. It should come from different sources, like Social Security, pensions (if you have them), and money from your savings.

Here are three ways to turn savings into income:

• Systematic Withdrawals: Invest your savings and withdraw carefully to create a paycheck.
• Lifetime Annuities: Buy an insurance product that guarantees income for life.
• Social Security Bridge: Use some savings to delay claiming Social Security, which boosts your payments later.

Pro tip: Cover essentials (like housing and healthcare) with reliable income sources like Social Security or annuities. For extras, use investment withdrawals, but be ready to scale back if markets dip.

One mistake to avoid? Relying on work income for essentials. At some point, you may not be able to work. Use those earnings for fun stuff instead, things you can cut back on if needed.

How to Manage Your Investments in Retirement

Your investments should match your income needs. If essentials are covered by guaranteed sources like Social Security, consider investing leftover savings in stocks.

Why? Stocks help protect against inflation. But remember, there’s risk involved. Stick to what feels comfortable.

Why It Is Important to Have a Money Management Plan

Yes, making a retirement financial plan takes effort. But the payoff? Totally worth it.

You’ll have a clear view of your money, less stress, and more freedom to enjoy your retirement. With the right plan, you can live the life you’ve always dreamed of, comfortably and confidently.

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