3 Sneaky Retirement Problems Gen X Is About To Face (Boomers Can Relate)
- - 3 Sneaky Retirement Problems Gen X Is About To Face (Boomers Can Relate)
Jamela AdamJanuary 15, 2026 at 2:55 AM
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Gen X is inching closer to retirement, but many of the challenges waiting ahead are the same ones baby boomers are struggling with right now.
Some of these issues can disrupt even the most carefully built retirement plan. If you’re part of Gen X, make sure you’re aware of these retirement problems so that you have time to adjust and avoid the financial surprises many Boomers are seeing.
Housing Affordability
Many Boomers assumed they would downsize, cash out some equity and move into a smaller place during retirement. In reality, a lot of them are stuck in houses that are either too expensive to maintain or too large for their current lifestyle.
The main reason for this is that home prices have gone up so much that selling your home and buying something smaller may not even be worth the effort. According to the Federal Reserve Bank of St. Louis, the median sales price of houses sold for the United States is now around $410,000, $100,000 higher than five years ago. Even condos and townhomes in many cities now cost more than what Boomers paid for their original homes. High mortgage rates are also discouraging people from moving because they do not want to trade a low rate for a higher one in retirement.
Gen X could face the same situation. You may have a good amount of home equity on paper, but that doesn’t guarantee you can convert it into a more affordable living arrangement. If your future home budget is based on selling and moving, you may want to create a backup plan that accounts for staying put longer than expected.
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Social Security and Taxes
Boomers have already learned that Social Security is not the reliable base income many assume it is. Even though the program is still paying benefits, current retirees are facing two issues that Gen X should prepare for.
The first is that Social Security can be smaller than expected. The Social Security Board of Trustees projects program cost to rise by 2035 so that taxes will be enough to pay for only 75% of scheduled benefits. In other words, you should plan for benefits that may replace a lower percentage of pre-retirement income.
The second issue is taxes. Many retirees are surprised to learn that up to 85% of their Social Security benefits can be taxable depending on their total income, per the Social Security Administration (SSA). These tax thresholds have not been adjusted for inflation in decades, so more people are pushed into higher tax liability without realizing it.
Generally, up to 85% of your benefits may be taxable if you are:
Filing single, head of household or qualifying widow or widower with more than $34,000 income.
Married filing jointly with more than $44,000 income.
Married filing separately and lived apart from their spouse for all of 2021 with more than $34,000 income.
Married filing separately and lived with their spouse at any time during 2021.
Longer Lives and Rising Costs
According to the CDC, the average life expectancy in the U.S. is 78.4 years, with females at 81.1 years and males at 75.8 years. That’s definitely good news, but longer life spans also mean you may have to spend more money on healthcare.
Long-term care, memory care and assisted living usually have to be paid out of pocket, which can be really expensive. According to CareScout, the national annual median cost of a semi-private room in a skilled nursing center rose to $111,325 in 2024, an increase of 7% from the year before, while the cost of a private room in a skilled nursing center increased 9% to $127,750.
Inflation is another thing to worry about. Groceries, utilities, housing, insurance, and medical care are all getting more expensive because of inflation. This means Gen X will need to plan for a retirement that may last three decades while costs continue to go up.
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This article originally appeared on GOBankingRates.com: 3 Sneaky Retirement Problems Gen X Is About To Face (Boomers Can Relate)
Source: “AOL Money”
