We Asked 4 Financial Experts: What Are the Biggest Threats to Boomers’ Retirement Savings?
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Boomers are entering retirement in an era marked by rising costs, longer lifespans and economic forces that can quickly erode even well-built nest eggs.
To better understand the biggest threats facing today’s retirees and issues they may be overlooking, financial and elder-care experts weighed in on where boomers are most vulnerable right now.
1. Longevity Risk: The Danger of Outliving Your Money
The biggest threat to boomers isn’t a market crash, it’s living longer than their money lasts, according to Linda Jensen, a certified exit planning advisor and founder of the Heart Financial Group. With many retirees now facing 25 to 30 or more years of retirement, longevity is “both a blessing and a financial risk,” Jensen added, and traditional savings models often fall short.
“Boomers will need income for 30 years or more, which means retirement planning must be built for endurance, not just the early years,” she said.
2. Rising Healthcare and Long-Term Care Costs Are Becoming Catastrophic
Healthcare is emerging as the “silent budget killer,” Jensen said, and long-term care is the most underestimated financial threat of all, able to “wipe out years of savings if it’s not planned for in advance.”
Most Americans over 65 are likely to need long-term care, yet only a tiny fraction are insured in that way, thus boomers face the real possibility of a single care event wiping out decades of savings, according to Evan Farr, an estate planning and elder law attorney at Farr Law Firm. “Statistics show that approximately 70% of people over age 65 will need long-term care, yet less than 10% of the population own any type of long-term insurance,” he said.
Boomers must plan now with insurance, Medicaid strategy and realistic cost projections.
3. Inflation Is Destroying Purchasing Power
While general inflation hurts all retirees, boomers face a second threat few recognize, according to Vince Stanzione, a financial trader and author of “The Millionaire Dropout” — the declining long-term purchasing power of the U.S. dollar. “So far this year, the dollar is down around 60% when priced in gold.”
Jensen likened inflation to “termites” for people on a fixed income, saying, it “quietly eats away purchasing power year after year.”
Even moderate inflation can severely strain a fixed income, but prolonged high inflation or currency decline can erode retirement savings much faster than expected.
4. Market Volatility Hits Boomers Harder Than Any Other Generation
If the market drops, boomers don’t have as much time to recover from a downturn and are exposed to something called “sequence of returns risk,” where losses early in retirement reduce income for life, Jensen shared.
She said that many fall into extremes: taking too much risk chasing returns or becoming overly conservative and falling behind inflation.
Michelle Moore, a retirement income specialist at Moore Family Wealth, said, “The biggest threat to boomers’ retirement savings is uncertainty. This includes market volatility, inflation and longevity.”
5. Overspending, Debt and Lifestyle Creep Are Undermining Savings
Even when boomers save diligently, poor spending habits, rising lifestyle expectations and lingering debt can derail retirement. Jensen pointed out that “lifestyle creep doesn’t stop at retirement … rising everyday costs quietly push spending higher than people ever projected.”
Credit card balances, mortgage payments and unexpected support for adult children drain retirement cash flow fast.
6. Social Security Timing Mistakes Reduce Lifetime Income Substantially
While Social Security is essential for most boomers, claiming it too early remains one of the most common and costly mistakes, Jensen warned. Reduced benefits can affect not only the retiree but their spouse for life. It’s a good idea to run scenarios with a qualified advisor, ideally one with specialized Social Security training, to maximize lifetime income and strengthen retirement stability.
With awareness, planning and the right expert guidance, boomers can turn these risks into opportunities to build a more secure and lasting retirement.
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