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Nearly half of today’s retirees are having trouble affording basic costs. New one Clever Real Estate Survey found that 46% of current retirees struggle to pay at least some of their monthly expenses, with everyday essentials creating the most pressure for those living on fixed incomes.
Here’s a look at the bills that retirees say will be the hardest to afford in 2026 — and the economic forces causing the stress.
Retired people are struggling to pay everyday bills
According to the survey, several key household expenses are weighing heavily on retirees’ budgets:
- grocery (28%)
- utilities (22%)
- credit card bill (18%)
- insurance bill (17%)
- Phone/Internet/Cable Bill (16%)
Additionally, retirees report struggling to pay medical bills (15%) and mortgage or rent bills (12%).
These are some of the most essential and least flexible parts of the budget – which is why they can be a challenge for retirees to digest.
“Groceries and utility bills pose a unique challenge for retirees because over the past few decades, they have increased in a relatively steady and predictable manner,” said Nick Pisano, data writer for Clever Real Estate. “But in the 2020s, both have generally increased much faster than the overall inflation rate, which could seriously impact the budget plans of people on fixed incomes, such as retirees.”
And unlike discretionary expenses, these are the only non-negotiable categories.
“Besides housing, there is nothing more basic than feeding yourself and keeping the lights on, and many people may be unwilling or unable to cut their budgets in these areas,” Pisano said.
Why are rising costs draining retirees’ budgets?
For many retirees, the problem isn’t poor planning — it’s the pace of rising prices in areas they expected to remain relatively stable. The survey shows that retirees are struggling with expenses the most, with expenses seeing the biggest increases, especially groceries and utilities.
“Retirees struggle to pay those expenses where inflation and price increases have hit the hardest,” Pisano said.
When budgets are built around fixed income sources like Social Security or pension payments, unexpected cost surges can quickly destroy financial security. Even small increases in essential categories can have an impact on the rest of a retiree’s budget.
Property taxes rising faster than expected
Another major pressure point is housing-related costs. The survey found that 43% of current retirees say they pay more than expected for property taxes, reflecting the huge increase in home values in many parts of the US over the past few years.
“Although many states offer some type of homestead exemption or deduction specifically for seniors, such a sharp increase in prices will certainly hit a large number of retirees,” Pisano said.
Spending more money on taxes means less money can be spent on everyday bills.
As inflation reshapes the cost of essentials from food to housing, retirees living on fixed incomes are feeling the pressure. With nearly half struggling to make ends meet, rising household expenses may force more retirees to reevaluate budgets, postpone some costs or look for new ways to stretch limited resources in the coming years.