Nearly One-Third of Social Security Recipients Cut Back on Essentials Due to Rising Costs

Core Insights - Rising costs are significantly impacting Social Security recipients, with over half reducing discretionary spending and more than one-third cutting back on essentials like medical costs and groceries [2][9] - The projected cost-of-living adjustment (COLA) for 2026 is 2.7%, which many believe will not be sufficient to cover rising living expenses [3][4] Cost-of-Living Adjustments - The Social Security Administration adjusts benefits annually to account for inflation, but the projected 2.7% COLA for 2026 may not meet the needs of older Americans [3][4] - Over 60% of retired Social Security recipients anticipate that rising tariffs will push inflation beyond what COLAs can cover, leading to increased financial strain [4] Inflation Impact - From 2010 to 2024, COLAs increased Social Security benefits by 58%, while inflation raised seniors' expenses by 73%, resulting in a significant gap that affects retirees' financial decisions [5] - A low COLA, such as the projected 2.7%, will diminish retirees' purchasing power, forcing them to cut expenses, deplete savings, or seek assistance [6][9] Financial Strategies - Financial experts recommend that retirees assess their monthly expenses, particularly discretionary spending, to alleviate financial stress caused by inflation [8] - Suggestions for managing inflation pressure include bulk purchasing of essentials, exploring reduced insurance premiums, and considering part-time employment [10]