If you’re one of the seniors living on Social Security, here’s what you should know!
Inflation has always been a burden, but things have changed dramatically over the past few years. This has complicated the financial lives of many citizens, especially seniors living on Social Security. As you can guess, one of the scariest things for many older Americans is having the value of their assets reduced.
Unfortunately, many of them also complained about the prices and costs being more than they expected. Since prices keep rising, many people have had to make drastic changes in their budgets, whether it’s downsizing their homes, getting a second job, retirees getting a part-time gig, shopping from outlets and vintage shops, cooking more, or going out less.
According to experts, inflation impacts retirees worse than any other group, especially seniors living on Social Security. It’s not easy for everyone to keep up with this, so if you need any tips, leave a comment below, and we’ll provide you with all the information you need.
If you’re curious to discover how inflation affects your daily life, keep reading, because we’re about to break everything down. Let’s start!
1. Housing
Many people in their golden years use Social Security checks to cover their basic needs, like housing and food. Inflation quickly raises these costs, sometimes way faster than Social Security benefits or other assets have time to increase too.
Moreover, inflation is also responsible for affecting utilities, property taxes, and maintenance requirements. Even if you don’t rent, this can put you under financial strain because homeowners can experience severe property tax raises and increased home repair costs.
…Did you experience any of these things? If yes, do you have some tips for other people in a similar situation? Leave them in the comments below!
2. Food and groceries
You go to the grocery store, and you have the same budget as always, but you can no longer get the same things. Prices have skyrocketed in the last couple of years, and products are getting more and more expensive. I’m pretty sure you’ve also experienced paying a ton of money only to arrive home and notice you didn’t get that much.
Seniors living on Social Security have a hard time paying for basic things, like cleaning supplies, meat, fresh produce, grains, and dairy. Unfortunately, this forces several people to opt for more affordable options that aren’t necessarily more nutritious, which can therefore potentially exacerbate their health problems.
3. Utilities and energy costs
Seniors living on Social Security don’t have unlimited financial resources, and everything that costs more than before can cause problems. For instance, inflation drives up the costs of many essentials, such as heating, electricity, and gasoline, which means higher bills for every citizen.
Moreover, extreme weather, like hot summers and cold winters, can make it tricky for those living on a tight income to manage these costs without making other adjustments. If we think about it, we need to change our shopping habits to match today’s prices, even if this means cutting back on essentials.
But that’s not all. Gasoline is another item that’s been victimized by inflation, and it made stay drivers leave their cars in the parking lots (although that’s not ideal either). Instead of paying more for gas, many citizens opted for public transportation, ride-sharing, biking, and walking to their appointments.
4. Depleting retirement savings
Inflation can quickly eat away at savings, especially for seniors living on Social Security. If you’re in this situation and you supplement your check with retirement accounts or personal savings, you can tell inflation decreased the value of your assets.
Speaking of fixed-income investments, whether it’s savings accounts or bonds, they might not give you sufficient returns to keep up with inflation, which means you have to make adjustments in your daily life to live well.
…If you want to save some cash, I couldn’t recommend this piggy bank enough!
5. Debt is getting harder to manage
As we’ve already discussed, inflation makes rates go higher, which means that everyone, especially seniors living on Social Security, has a harder time carrying debt. Not everyone has enough flexibility to adjust to their interest costs, and this can quickly become a financial burden.
Unfortunately, these things go hand in hand. When inflation rises, interest rates can’t be left behind, so they do the same to bring prices under control. Just like a domino effect, this raises the monthly payment costs associated with debt, including credit card, mortgage, auto, and even student loan installments. According to sources, an increasing number of seniors are retiring with debt, which further undermines their fixed incomes.
6. Low quality of life
Another terrible thing seniors living on Social Security can experience is a low quality of life. Inflation can change people’s spending habits, and seniors find themselves cutting back on important spending, such as travel, entertainment, and groceries, to stretch their income.
Other than that, constantly worrying about having enough money to live can impose severe health consequences such as stress, anxiety, and depression. If these things aren’t taken care of soon enough, these conditions can worsen over time.
7. Increased need for government assistance programs
To keep up with the rising cost of living, more seniors might have to rely on government assistance programs like the Supplemental Nutrition Assistance Program (SNAP), housing help, or energy support to meet their needs.
According to sources, although these programs are available, many seniors don’t know about their existence or are hesitant to apply. Furthermore, this can result in gaps in support when their financial stability is undermined by inflation.
Overcoming these challenges
Many people, especially seniors living on Social Security, are under strain due to inflation and rising costs, but there are a couple of ways that can help you conquer this tough situation.
If you’re still working and preparing for your golden years, the recent inflation can act like a wake-up call to help you prepare for the future. Take this as a sign to come up with a better saving plan and maybe even find an additional income source, rather than depending solely on Social Security.
The main thing you should keep in mind is that income, growth potential, protection, and liquidity are the four cornerstones of every effective retirement plan. Since so many of us no longer have pensions from our employment, this calls for setting up a pension. This tip offers enough room for growing, beating inflation, and still enjoying your golden years to the fullest.
If you’re already retired and unable to make a personal pension from your retirement assets, there are still ways to make it. Think about what you like to do or what you know, and offer your services and products to a larger audience. You can also sell online the things you no longer need or use; check out platforms like Facebook Marketplace or Etsy, or organize a garage sale to make some cash. Leave a comment below, and we’ll give you all the tips you need to conquer inflation and stay on top of your financial game!
Do you have any other tips and suggestions for seniors living on Social Security? They’d be much appreciated, so please share them with us! Other than that, if you find this article helpful and would like to check out something else from Retired in USA, here’s a good post for you: 9 Retirement Hobbies That Make EASY Money
