About 75 million older Americans depend on Social Security advantages on a month-to-month foundation to pay for his or her housing, groceries, and other important bills. 

However, retirees are seeing a decline of their Social Security cost spending energy as prices continue to rise across the nation because of components such as inflation and tariffs. 

In October, the Social Security Administration (SSA) announced the annual Cost-of-Living Adjustment (COLA) shall be a enhance of 2.8% in 2026, which is an average increase of $56 per month-to-month cost. This makes the whole average cost $2,071 for seniors across the U.S. 

According to the SSA, these vital month-to-month funds account for not less than half of the income of practically 24 million older Americans as of June 2025, which is more than 40% of Social Security recipients age 65 and older. 

While the COLA is meant to help Social Security beneficiaries fight inflation every yr, many seniors are also bracing for financial pressures as Medicare premiums are going through the second-largest increase in the program’s historical past in 2026. 

Over 66 million senior residents obtain Medicare advantages, and the Part B premiums are leaping practically 10% next yr. This increase will price enrollees an average of $17.90 monthly, as the normal month-to-month funds shall be $202.90. 

This premium increase will eat up half of the COLA increase for many Social Security recipients. 

All of these components may imply that American seniors should modify their budgets and put together for the rising prices ahead of time. We’re sharing 3 ways to stretch your Social Security advantages farther in the yr ahead. 

Cut down prices the place you possibly can in your funds

The main solution to cut prices in your funds is to conduct a financial audit of your spending. 

This will allow you to establish areas the place you may make changes and probably save money in the future.

DON’T MISS…

According to a latest LendingTree survey, the average annual price of automotive insurance coverage with full coverage is $2,101. This shortly provides up every month, and there’s a solution to save big in your automotive insurance coverage. 

The survey discovered that 92% of U.S. customers saved money on auto insurance coverage once they switched carriers, and 63% said they saved not less than $100 yearly after making the swap. 

If you may have misplaced monitor of how many subscriptions you may have gathered over the years, you possibly can also cut month-to-month prices by canceling subscriptions and app providers. The Rocket Money platform can help you discover and immediately monitor your subscriptions, so you recognize which of them to cancel.

Generate additional income with a facet hustle

Taking on a part-time job or facet hustle is a great strategy to fight prices that your month-to-month Social Security cost doesn’t cowl. 

According to Bankrate, 22% of child boomers — those aged 61 to 79 — report having facet hustles. The research discovered that 59% of child boomers earn over $100 monthly with their facet hustles. 

This additional money can simply cowl a cellphone invoice or a grocery purchasing journey, assuaging any stress or strain out of your funds. 

Factor inflation into your financial funds 

While COLA is meant to fight inflation, an AARP ballot discovered that 77% of older Americans say a 3% COLA wouldn’t be enough to maintain up with rising costs. The COLA for 2025 and 2026 is each decrease than 3%. 

This means that older Americans need to account for inflation of their financial planning for the yr ahead by including a longer-term inflation hedge. This might embrace inflation-protected annuities or having a combine of belongings in your portfolio.