3 Worst Money Habits for Boomers To Carry Into 2026

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A new year offers a new opportunity for a fresh financial start, but only if you leave behind the bad habits that brought you down before — especially for baby boomers who are in or near retirement. 

What older Americans don’t do in 2026 is as important as what they do and those born between the mid-1940s and mid-1960s should make sure to leave these three self-defeating money habits in the past so they can build a brighter future. 

In contrast, here are the best money habits boomers should keep doing in 2026.

Bailing Out Adult Children Who Can Manage on Their Own

An AARP Research study found that 75% of parents are financially supporting adult children well beyond the traditional out-of-nest ages of 18 to 22, even though more than half of those adult children are capable of supporting themselves with money to spare. 

The average aging parent contributes roughly $7,000 per year — money they could be using to invest, build savings or enjoy retirement. 

A New York Times report confirmed what the AARP study’s numbers reveal — that financing adult children who don’t need the help fosters ongoing dependence and failure to launch for them and financial insecurity and retirement instability thanks to the bank of mom and dad. 

Underestimating Healthcare Costs 

Boomers in relatively good health, particularly those who have enjoyed employer-based health insurance, might put medical expenses on the back burner as they enter 2026. 

The problem with failing to plan now is that healthcare costs will only increase with age.

According to Fidelity’s 24th annual Retiree Health Care Cost Estimate, a 65-year-old who retired in 2025 should expect to spend $172,500 on healthcare over the remainder of their life, with one in 10 dollars going to out-of-pocket prescription drug costs and the rest split roughly evenly between Medicare premiums and related expenses such as copayments and deductibles. 

In a worrying trend, one in five have never even considered — much less planned for — healthcare costs in retirement.

Borrowing To Get By

According to the Vanguard’s 2025 U.S. Retirement Outlook study, just 30% of boomers are prepared for life beyond their earning years. One of the biggest challenges facing the generation is how to fill the gap between their spending needs and their income potential.

If debt served as the bridge in 2025, that’s a habit older Americans should leave behind in the new year. The good news is that Experian reported boomer-based borrowing continues to decline after a decade of debt reduction.

However, more work needs to be done because:

• Nearly 83% of boomers carry a credit card balance
• 64% have auto loans
• 67% have mortgages, which aren’t necessarily bad
• 36% are paying off personal loans
• Nearly one in five have HELOCs, the most of any generation
• More than 4% are still paying off student loans

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