{"id":230319,"date":"2025-10-21T21:54:16","date_gmt":"2025-10-21T21:54:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/230319\/"},"modified":"2025-10-21T21:54:16","modified_gmt":"2025-10-21T21:54:16","slug":"5-money-pressures-forcing-boomers-to-rethink-retirement","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/230319\/","title":{"rendered":"5 Money Pressures Forcing Boomers To Rethink Retirement"},"content":{"rendered":"\n

While baby boomers should be entering retirement<\/a> or imminently poised to, as many as 30% of them are considering delaying retirement due to financial concerns.<\/p>\n

Learn More: You\u2019ll Run Out of Money in 20 Years\u2019 \u2014 Why Retirees Are Rethinking Their Savings Strategy<\/a><\/p>\n

Read Next: 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth<\/a><\/p>\n<\/p>\n

Certified financial planners explained the key money pressures that are forcing boomers to stave off retiring and offered some solutions<\/a>.<\/p>\n

Rising healthcare costs, housing and everyday essentials like groceries are stretching budgets due to inflation, according to Christopher Stroup, a CFP and the owner of Silicon Beach Financial<\/a>.<\/p>\n

\u201cAdd in travel, support for adult children or helping aging parents, and retirement timelines shift,\u201d he said.<\/p>\n

Many boomers underestimate how inflation compounds their fixed costs<\/a>, which makes careful cash flow tracking and proactive planning essential to avoid dipping into savings too quickly, he stressed.<\/p>\n

One strategy is to increase any disposable income that is left each month to Roth IRAs and other tax-favored investments, according to Steven Conners, founder and president of Conners Wealth Management<\/a>.<\/p>\n

\u201cIf it is more tax-friendly when you start taking retirement income, you will need to save less. But this doesn\u2019t equate to all taxable retirement funds,\u201d Conners said.<\/p>\n

Be Aware: 4 Retirement Expenses Boomers Didn\u2019t Plan For \u2014 but Should Have<\/a><\/p>\n

Inflation also affects the costs of borrowing, which means \u201cdebt feels heavier, while inflation erodes purchasing power,\u201d Stroup said.<\/p>\n

Boomers should revisit budgets annually, prioritize fixed essentials and stress-test plans for rising costs. \u201cAllocating more toward cash reserves and fixed-income investments helps preserve flexibility, while intentionally trimming discretionary spending gives retirees more confidence their money will last,\u201d Stroup said.<\/p>\n

Additionally, Conners urged boomers to pay down high-interest debt<\/a> like credit cards first because \u201cit\u2019s a guaranteed return.\u201d For mortgages or HELOCs, he recommended comparing interest rates with potential investment returns.<\/p>\n

Healthcare costs continue to be challenging for boomers. While lower drug cost caps and more predictable out-of-pocket limits are providing relief, rising Part B premiums and long-term care expenses still stress boomer budgets, Stroup said.<\/p>\n

A good rule of thumb is to plan for healthcare to consume 15% to 20% of retirement spending, Stroup said, though it varies by health status and geography.<\/p>\n

\u201cMedicare premiums, supplemental policies and out-of-pocket costs add up quickly. Building a dedicated healthcare bucket or health savings account (if eligible) reduces the risk of medical expenses derailing retirement.\u201d<\/p>\n

Housing costs can eat up a huge chunk of a boomer\u2019s budget<\/a>, making retirement less likely. Thus, boomers may want to downsize when housing costs exceed 30% of retirement income or when maintenance feels overwhelming, Stroup urged.<\/p>\n

Any boomers with high interest mortgages should keep an eye on 10-year U.S. Treasuries, Conners added. \u201cIf the 10-year Treasury yield were to come down in yield, it will lower mortgage rates, should it prove sustainable.\u201d<\/p>\n

These are shaky economic times, from tariff-induced price hikes to inflation and concerns about a slowing job market. Stroup pointed out, \u201cA downturn here can permanently dent savings.\u201d Thus, boomers should hold two to three years of living expenses in cash or short-term bonds, then balance equities for growth with safer assets for stability.<\/p>\n

\u201cFlexible withdrawals like reducing spending in down markets helps protect portfolios from unnecessary drawdowns.\u201d<\/p>\n

Conners recommended boomers consider a fixed-indexed annuity. \u201cMany fixed indexed annuities have no fees and protect against market downturns,\u201d he said.<\/p>\n

For boomers who feel behind or not quite ready to retire, Stroup recommended taking these three immediate steps:<\/p>\n

Audit spending: Identify where money leaks are happening.<\/p>\n

Restructure debt: Refinance or pay down high-interest balances.<\/p>\n

Boost savings rate: Direct windfalls, bonuses or side income into retirement accounts.<\/p>\n

Conners added that instead of delaying retirement altogether, boomers can consider working part time.<\/p>\n

Either way, quick, disciplined moves create momentum, reduce stress and help shift from reactive to proactive financial decision-making.<\/p>\n

More From GOBankingRates<\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: I\u2019m a CFP: 5 Money Pressures Forcing Boomers To Rethink Retirement<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"While baby boomers should be entering retirement or imminently poised to, as many as 30% of them are…\n","protected":false},"author":2,"featured_media":230320,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[8913,45,49,48,26334,133,109683,24084,131,132,98899,8496,87382],"class_list":{"0":"post-230319","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-baby-boomers","9":"tag-business","10":"tag-ca","11":"tag-canada","12":"tag-christopher-stroup","13":"tag-finance","14":"tag-fixed-costs","15":"tag-healthcare-costs","16":"tag-personal-finance","17":"tag-personalfinance","18":"tag-retirement-expenses","19":"tag-retirement-income","20":"tag-steven-conners"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/230319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=230319"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/230319\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/230320"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=230319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=230319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=230319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}