5 Biggest Financial Concerns for Retirees and How to Fix Them

By Margaret Chen, CFP®, MBA Finance

Certified Financial Planner (CFP®) • Updated August 21, 2026

Why These 5 Concerns Keep Coming Up in Every Client Meeting

In my 18 years as a Certified Financial Planner, I’ve sat across from hundreds of retirees and pre-retirees. Their situations differ — some have pensions, some don’t; some retired at 55, others are still working at 72. But the fears? Those are remarkably consistent.

New research from the Employee Benefit Research Institute and the Federal Reserve’s 2024 Survey of Household Economics confirms what I hear in my own practice: retirees share a core set of financial concerns that keep them awake at night. The good news is that every single one of these worries has a concrete, actionable solution.

Below, I’m breaking down the five biggest financial concerns for retirees based on the latest data, and — more importantly — exactly what you can do about each one starting this week.

1. Inflation Eroding Purchasing Power

Why It Ranks #1

According to a 2025 survey by the Alliance for Lifetime Income, 67% of retirees say inflation is their single greatest financial worry. And I understand why. When you’re living on a fixed or semi-fixed income, watching grocery bills climb 20%+ over three years feels visceral. A gallon of milk that cost $3.59 in January 2021 averaged $3.84 by early 2025 — and that’s after prices moderated.

What I see most often is that retirees overestimate inflation’s damage to their specific spending while underestimating the tools they have to fight it. Your personal inflation rate may differ dramatically from the headline CPI number. Housing costs, for example, may be largely locked in if you own your home outright.

What to Do About It

1. Calculate your personal inflation rate. Track your actual spending in five categories — housing, food, healthcare, transportation, and discretionary — for 90 days. Compare year-over-year. You’ll likely find your real inflation rate is lower than the national average if your mortgage is paid off.
2. Allocate 15-25% of your bond portfolio to TIPS. Treasury Inflation-Protected Securities adjust their principal with the Consumer Price Index. You can buy them directly at TreasuryDirect.gov via IRS-linked accounts or through low-cost ETFs like Vanguard’s VTIP.
3. Delay Social Security if possible. Each year you delay past 62 (up to 70) increases your benefit by roughly 6-8%. That benefit is then adjusted annually by COLA — a built-in inflation hedge most people undervalue.
4. Review your spending plan every six months, not once a year. Inflation shifts fast, and so should your budget.

For a deeper dive into separating inflation fact from fiction, I recommend reading Inflation and Retirement Savings: 6 Myths Seniors Must Stop Believing.

2. Social Security’s Long-Term Solvency

The Real Numbers Behind the Headlines

The Social Security Administration’s 2024 Trustees Report projects the Old-Age and Survivors Insurance (OASI) Trust Fund will be depleted around 2033-2035. If Congress does nothing — and I want to emphasize that word, nothing — benefits could be reduced to approximately 79-83% of scheduled amounts.

That’s a meaningful cut, but it’s not zero. I often tell my clients: Social Security has never missed a payment in its 90-year history, and the political cost of slashing benefits for 70+ million Americans makes full elimination virtually impossible. The more likely outcome is a combination of modest benefit adjustments, payroll tax increases, and changes to the full retirement age for younger workers.

What to Do About It

1. Plan for 75-80% of your projected benefit as a stress test. If you’d receive $2,400/month at full retirement age, build your plan around $1,800-$1,920. If the full amount arrives, that’s a bonus.
2. Diversify your retirement income sources. Social Security should ideally be one of three to four income streams — alongside retirement account withdrawals, possibly a part-time income, and perhaps a small annuity or pension.
3. Check your state’s tax treatment. Thirteen states still tax Social Security benefits in some form. Knowing where you stand can save you hundreds or even thousands annually. Here’s a detailed breakdown: States That Tax Social Security Benefits in 2026: What to Know.
4. Stay informed on legislative proposals. The Social Security Fairness Act signed in January 2025 eliminated WEP and GPO penalties for public-sector retirees. More changes are coming — and understanding them matters. For context on the shortfall itself, read Social Security Shortfall: What Retirees Must Know Now.

3. Healthcare and Long-Term Care Costs

The Number That Shocks Everyone

Fidelity’s 2024 Retiree Health Care Cost Estimate puts the average 65-year-old couple’s lifetime healthcare spending at $315,000 — and that excludes long-term care. When I share this number with clients, the room goes quiet. It’s not meant to scare you; it’s meant to motivate you to plan.

Medicare covers a lot, but it doesn’t cover everything. Original Medicare (Parts A and B) leaves gaps in dental, vision, hearing, and most critically, extended nursing care. A semi-private room in a nursing facility averaged $104,000 per year nationally in 2024, according to Genworth’s Cost of Care Survey.

What to Do About It

1. Understand your Medicare options thoroughly. Visit Medicare.gov during Open Enrollment (October 15 – December 7) every year. Don’t assume last year’s plan is still your best option — formularies, premiums, and networks change annually.
2. Consider a Medigap policy if you’re on Original Medicare. Plans F and G cover most out-of-pocket costs. Yes, premiums run $150-$300/month depending on your state and age, but they cap your exposure.
3. Evaluate long-term care insurance or hybrid policies before age 65. Premiums rise sharply after 60, and health conditions can disqualify you. Hybrid life/LTC policies have become more popular because they guarantee a death benefit even if you never need care.
4. Maximize your HSA if you’re still working and eligible. After 65, HSA funds can be withdrawn for any purpose (taxed as income) or used tax-free for qualified medical expenses — including Medicare premiums, dental work, and hearing aids.

One concern I’m hearing more frequently: retirees who chase a large COLA increase don’t realize it can push them into higher Medicare premium brackets (IRMAA). A 2027 COLA of 3%+ could trigger exactly that scenario — learn more at Big COLA in 2027 Could Raise Medicare Premiums and Your Tax Bill.

4. Running Out of Money Before Running Out of Time

Longevity Risk Is the Quiet Threat

A 65-year-old woman today has a 50% chance of living past 87, according to the Society of Actuaries. A 65-year-old man has a 50% chance of reaching 85. For couples, there’s a 50% probability that at least one spouse will live past 92. That’s potentially 25-30 years of retirement spending.

A recent survey by the National Council on Aging found that 41% of adults over 60 worry about depleting their savings too soon. What troubles me as a planner is that many retirees respond to this fear by spending too little — denying themselves experiences and care they can actually afford — while others spend without guardrails and find themselves in genuine trouble by their late 70s.

What to Do About It

1. Adopt a dynamic withdrawal strategy. The rigid “4% rule” is a starting point, not gospel. Research from Investopedia and financial planning academics like Wade Pfau suggests adjusting withdrawals based on market performance — spending slightly more in good years and pulling back 5-10% in down years.
2. Build a 2-year cash buffer. Keep 18-24 months of living expenses in a high-yield savings account or short-term Treasury bills. This prevents you from selling equities during a downturn — which is the single most destructive thing a retiree can do to their portfolio.
3. Consider partial annuitization. Using 20-30% of your savings to purchase a single premium immediate annuity (SPIA) can create a guaranteed income floor that covers essential expenses alongside Social Security. This isn’t right for everyone, but for retirees without pensions, it can replace that missing “paycheck.”
4. Revisit your plan at 70, 75, and 80. Your spending patterns, health, and needs shift. A plan built at 63 shouldn’t run your life at 78 without updates.

5. Falling Victim to Financial Fraud

A $28.3 Billion Problem

The FBI’s Internet Crime Complaint Center reported that Americans over 60 lost $3.4 billion to fraud in 2023 alone — a 11% increase over 2022. AARP estimates total elder financial exploitation, including unreported cases, exceeds $28.3 billion annually. These aren’t just statistics to me; I’ve had clients lose five- and six-figure sums to sophisticated scams.

The fastest-growing categories targeting seniors include cryptocurrency investment fraud, romance scams, and increasingly convincing AI-generated voice impersonation (“grandparent scams”). What makes this a financial planning concern, not just a safety concern, is that fraud losses are almost never recovered. The median recovery rate is under 25%.

What to Do About It

1. Freeze your credit at all three bureaus (Equifax, Experian, TransUnion). It’s free, takes 10 minutes, and prevents anyone from opening accounts in your name. You can temporarily lift the freeze when you legitimately need credit.
2. Establish a trusted contact person on all financial accounts. FINRA Rule 4512 allows brokerage firms to reach out to a designated individual if they suspect cognitive decline or exploitation. Most major banks offer this too.
3. Never act under urgency. I tell every client over 60 the same thing: any legitimate financial matter can wait 48 hours. If someone pressures you to send money, wire funds, or buy gift cards right now, it’s a scam. Every single time.
4. Regularly review statements and set transaction alerts. Even a $5 unauthorized charge can be a test before a larger theft. Set up text or email alerts for any transaction over $100.
5. Educate yourself on current tactics. Scammers evolve constantly. For a comprehensive look at the latest data, see Financial Scams Targeting Older Adults: A 2025 Data Deep Dive.

Putting It All Together: Your 5-Point Action Plan

If you’ve read this far, you already have a significant advantage: awareness. The biggest financial concerns for retirees — inflation, Social Security uncertainty, healthcare costs, longevity risk, and fraud — are all manageable with the right strategy. Here’s how I’d prioritize if you’re starting today:

1. This week: Freeze your credit at all three bureaus and designate a trusted contact on your brokerage and bank accounts.
2. This month: Calculate your personal inflation rate by reviewing the last 12 months of spending across key categories.
3. Within 90 days: Run a Social Security stress test at 75-80% of projected benefits using the SSA’s online calculator, and identify any income gap.
4. Before next Open Enrollment (October 15): Review your Medicare plan, compare at least three alternatives, and calculate whether a Medigap switch saves money.
5. Before year-end: Meet with a fee-only fiduciary financial planner to review your withdrawal strategy, asset allocation, and long-term care exposure. The CFP Board’s website (LetsMakeAPlan.org) offers a free planner search tool.

The Concern That Should Replace All Five

Here’s what I’ve learned after nearly two decades in this field: the retirees who struggle most aren’t the ones with the smallest accounts. They’re the ones who avoid looking at the numbers entirely. Fear of the unknown is always worse than the known — even when the known isn’t perfect.

The five biggest financial concerns for retirees are real, but none of them are unsolvable. Social Security will evolve, not vanish. Inflation fluctuates, but so can your strategy. Healthcare costs are steep, but Medicare and supplemental coverage exist specifically to manage them. Your money can last if you give it a disciplined framework. And fraud is preventable with basic digital hygiene and a healthy skepticism.

The one concern I wish more retirees had? Not having a plan at all. If you take one thing from this article, make it this: get specific, get proactive, and get help if you need it. Your future self will thank you.

About Margaret Chen, CFP®, MBA Finance

Certified Financial Planner (CFP®)

Margaret Chen is a Certified Financial Planner™ (CFP®) with more than 18 years of experience guiding American seniors through retirement planning, Social Security optimization, and Medicare decisions. She holds an MBA in Finance and has dedicated her career to helping retirees protect their savings, maximize their benefits, and avoid the most common financial mistakes that derail retirement. At Daily Trends Now, Margaret writes practical, fact-checked guides that translate complex financial topics into clear action steps for older Americans.