3 Purchases Retirees Are Cutting Because Social Security Isn’t Keeping Up
Written by
Dawn Allcot
Edited by
Amen Oyiboke
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Despite annual cost-of-living increases in Social Security, retirees continue to struggle. The 2026 COLA increase of 2.8% exceeded the 2025 annual inflation rate of 2.7%, but just barely. Experts say it’s too little, too late.
“The reality is that seniors consistently tell us that they see their benefits falling further behind inflation every year,” said Shannon Benton, the Senior Citizens League executive director, in a 401kSpecialistMag article. “Four in five seniors are either already struggling to pay for basics like rent and food or are living from benefits check to benefits check.”
That leaves many retirees with no option but to cut back on purchases.
Dining Out
Americans spent an average of $3,945 dining out in 2024, according to Bureau of Labor Statistics data. Finance experts often recommend cooking meals at home to save money. Today, many retirees are doing so out of necessity.
“Costs are skyrocketing,” said Lori B., a retiree in Long Island, New York. “We don’t eat out as much. I shop in stores more and look for sales.”
Food Delivery
During the pandemic, many seniors turned to grocery delivery to avoid leaving home. Some continued with delivery because of the convenience, but now find it’s cheaper and easier to shop in stores, instead.
“I got so used to doing Peapod,” Lori B. said. “Now I walk the aisles, and I’m seeing other, cheaper options I may not have seen on the app.”
She also uses the cashback app Fetch and cashes in points for things like movie tickets to stretch her retirement budget.
Medical Services
Alarmingly, TSCL data showed that 57.6% of seniors have skipped at least one medical service in the past year due to rising costs. Seniors are skipping preventative or necessary medical treatments or assistive products not typically covered by Traditional Medicare.
The TSCL 2025 Retirement Survey revealed that more than 42% of seniors skipped dental care, 28.8% skipped an eye exam or prescription eyeglass purchase, and 19.6% skipped a hearing exam or hearing aid purchase.
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