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Despite annual cost of living increases in Social Security, retirees continue to struggle. The 2.8% increase in the 2026 COLA exceeds the 2025 annual inflation rate of 2.7%, but just barely. Experts say it’s too little, too late.
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“The reality is that seniors tell us consistently that they see their benefits falling behind inflation every year,” said Shannon Benton, executive director of the Senior Citizens League, in a 401kSpecialistMag article. “Four out of five seniors are already either struggling to pay for basics like rent and food or living from benefit check to benefit check.”
This leaves many retirees with no option but to cut back on purchases.
eat out
According to data from the Bureau of Labor Statistics, Americans will spend an average of $3,945 on dining out in 2024. Finance experts often recommend cooking at home to save money. Today many retired people are doing this out of compulsion.
“The costs are skyrocketing,” said Lori B., a retiree in Long Island, New York. “We don’t eat out as much. I shop more in stores and look for sales.”
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food delivery
During the pandemic, many senior citizens turned to grocery delivery to avoid leaving the house. Some people continued with delivery because of the convenience, but now they find it cheaper and easier to shop in stores.
“I’ve gotten used to doing the Peapod,” Lori B. said. “Now I walk down the aisle, and I see other, cheaper options that I wouldn’t have seen on the app.”
She also uses the cashback app Fetch and cashes in points for things like movie tickets to boost her retirement budget.
medical services
Worryingly, TSCL data revealed that 57.6% of senior citizens have skipped at least one medical service in the last year due to rising costs. Seniors are forgoing preventive or necessary medical treatments or supportive products that typically are not covered by traditional Medicare.
The TSCL 2025 Retirement Survey revealed that more than 42% of seniors skipped dental care, 28.8% skipped eye exams or prescription eyeglass purchases, and 19.6% skipped hearing exams or hearing aid purchases.