I’m a Financial Counselor: 2 Tips for Retirees Who Are Struggling Due To Inflation
Written by
Gabrielle Olya
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Levi Leidy
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Although inflation has been declining, a rise in prices — even if it’s minimal — can put a big strain on retirees’ budgets.
“Inflation impacts seniors particularly hard because the vast majority are living with fixed incomes,” said Chris Orestis, a certified senior advisor and president at Retirement Genius.
Inflation especially impacts retirees who are reliant on their Social Security benefits to cover a significant portion of their living costs. Although the Social Security Administration may implement a cost-of-living-adjustment (COLA), this only happens once a year, so it may not take effect during surges in inflation.
“When inflation is on the rise, income and health benefits don’t adjust automatically to reflect the economic reality of what’s happening in real-time,” Orestis said. “The COLA or any changes to Medicare happen annually, and people also really feel the market up and downs of income coming from investments. For people unable to generate any additional income and [who are] reliant only on fixed income, the impact of inflation is particularly harsh.”
Orestis offered a couple of tips for retirees who are struggling due to the impacts of inflation.
Take Advantage of Discount and Aid Programs
The government and local businesses often offer programs for seniors to save on both essential and discretionary expenses.
“There are numerous government programs at the state and federal level that will provide assistance for food, housing and transportation,” Orestis said. “Seniors are also eligible for a wide range of discount programs offered by grocers, retailers, entertainment [venues] and travel [companies].”
Create and Stick To a Budget
When you are living on a fixed income, it is particularly important that you stick to a monthly budget.
“Budgeting is an important aspect of living in retirement, and people should never be sailing blindly through their monthly expenses,” Orestis said. “Do all you can to manage and balance your fixed expenses such as housing and utilities, your adjustable expenses such as food and healthcare and your discretionary expenses such as entertainment.”
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