Despite their substantial wealth, baby boomers are falling into costly financial pitfalls, including overspending on subscriptions, underestimating healthcare costs, and holding onto high-interest debt. These habits threaten long-term financial stability even as they approach retirement.
- 41% of boomers carry credit card debt into retirement with an average balance of $12,800
- 63% maintain at least five unused digital subscriptions, costing $210/month on average
- One in three boomers expects to spend over $60,000 on healthcare in retirement
- 52% have not updated their wills or estate plans in over five years
- 58% increase spending on travel and dining post-retirement despite stagnant incomes
- Reverse mortgages and fixed-indexed annuities saw a 22% increase in uptake since 2023
Baby boomers, the wealthiest generation in U.S. history, are increasingly at risk of financial strain due to recurring but avoidable spending errors. While often perceived as financially savvy, data reveals that nearly 41% of boomers aged 55 to 74 carry credit card debt into retirement, with an average balance of $12,800—up 18% from 2020. This debt burden is compounded by a proliferation of unused subscriptions, with 63% of surveyed boomers maintaining at least five paid digital services, including streaming platforms and fitness apps, collectively costing an average of $210 monthly. The real threat lies in underpreparedness for rising healthcare expenses. One in three boomers expects to spend over $60,000 on medical care during retirement, yet only 38% have set aside dedicated funds. This gap is exacerbated by a continued reliance on traditional health insurance plans that cover only 60% of out-of-pocket costs, leaving retirees vulnerable to unexpected bills. Additionally, many boomers are delaying critical financial planning. A 2025 survey found that 52% have not updated their wills or estate documents in over five years, and 44% lack a long-term care strategy. These oversights increase the risk of asset depletion and family disputes in later years. Financial advisors report that boomers are particularly susceptible to lifestyle inflation, with 58% spending more on travel and dining out post-retirement than during their peak earning years. This shift, combined with stagnant pension income and rising inflation, erodes savings faster than anticipated. The broader market impact includes increased demand for senior-focused financial products, such as reverse mortgages and fixed-indexed annuities, which are seeing a 22% rise in uptake since 2023. Institutions like Fidelity and Vanguard have launched new retirement planning tools to help retirees manage these risks, signaling a growing need for personalized financial guidance. The consequences extend beyond individuals—family members and caregivers often bear the brunt of poor financial decisions, and public healthcare systems may face greater strain as boomers age.