But with middle class income not going as far as it used to, he said vacations may be replaced by housing and other essentials.
Melanie Musson, finance expert with Clearsurance, said the middle class won’t be able to afford a new car in the not-so-distant future.
“Tuition rates have been steadily climbing for years,” he said, “and it’s highly likely they’ll outpace a middle-class income in the near future.”
“I can certainly see owning a home becoming something that’s more and more out of reach for your average middle-class citizen.”
Other critical areas to watch, according to experts, are long-term care and healthcare costs.
For those looking to retire in the next five years, Kojonen said another aspect to consider is leisure and travel in retirement.
“Traditionally,” he said, “bonds and fixed income have been seen as cornerstones of a retiree’s portfolio, providing both income and stability.”