5 Biggest Financial Concerns for Retirees in 2026 (And Fixes)

By Robert Thompson, CPA, EA (Enrolled Agent)

Certified Public Accountant (CPA) • Updated June 06, 2026

Every year, I sit down with dozens of clients approaching or already in retirement, and 2026 has brought a new level of anxiety to those conversations. The questions aren’t abstract anymore—they’re urgent. Will my money last? Is Social Security enough? What happens if I get sick?

Recent research from the Employee Benefit Research Institute (EBRI) and the Federal Reserve’s Survey of Household Economics confirms what I’ve been seeing in my own practice: retirees are more financially stressed than at any point in the past decade. And the reasons are concrete, measurable, and—thankfully—addressable if you know where to look.

As a CPA and Enrolled Agent with over 20 years of experience working with retirees, I want to walk you through the five biggest financial concerns for retirees in 2026 and, more importantly, give you real strategies to fight back against each one.

1. Inflation Is Quietly Draining Retirement Savings Faster Than Expected

This is the concern I hear most often, and the data backs it up. A 2025 survey by the National Council on Aging found that 58% of adults over 60 reported depleting retirement savings earlier than planned, with inflation cited as the primary driver. The cumulative effect of the 2022–2024 inflation surge—when CPI peaked above 9%—hasn’t disappeared just because the annual rate has moderated to roughly 3.2% in mid-2025.

Here’s what most people miss: even “moderate” inflation compounds. If you retired in 2020 with $500,000 in savings, the purchasing power of that nest egg has already dropped by an estimated $75,000 to $90,000 in real terms. Your dollar buys less food, less fuel, and especially less healthcare than it did five years ago.

What You Can Do Right Now

• Reassess your withdrawal rate. The classic “4% rule” was designed for a different era. In my practice, I’m advising many clients to use a dynamic withdrawal strategy—pulling 3.5% in years when markets are flat or down, and allowing up to 4.5% only in strong years.
• Shift a portion of fixed-income holdings into Treasury Inflation-Protected Securities (TIPS). These adjust with CPI and provide a real hedge. You can purchase them directly through TreasuryDirect.
• Audit your monthly expenses ruthlessly. I often tell my clients that the most powerful financial tool in retirement isn’t an investment—it’s a detailed budget reviewed quarterly.

For a deeper dive into exactly how inflation is hitting retirees’ wallets, I’d recommend reading 7 Ways Inflation Is Cutting Into Retirement Savings in 2026.

2. Social Security’s COLA Isn’t Keeping Pace With Real Costs

The 2026 Social Security Cost-of-Living Adjustment (COLA) came in at 2.8%. On paper, that sounds reasonable. In practice, it’s failing most retirees. The reason is structural: the COLA is calculated using the CPI-W, which tracks spending patterns of urban wage earners—not retirees. It underweights healthcare, which the Bureau of Labor Statistics confirms consumes roughly 14.5% of spending for households headed by someone 65 or older, compared to about 8% for younger workers.

The average Social Security benefit in 2026 is approximately $1,976 per month, according to the Social Security Administration. That 2.8% COLA adds about $55 per month—before Medicare Part B premiums take their cut. After the 2026 Part B increase to $185 per month (up from $174.70), many retirees are netting less than $40 in actual purchasing power gains.

Strategies to Bridge the Gap

• Delay claiming if you haven’t started. Every year you delay past full retirement age (up to 70) increases your benefit by 8%. For someone whose full retirement age benefit is $2,000, waiting until 70 means $2,640—a permanent raise that also increases future COLAs.
• File for any benefits you may be missing. Spousal benefits, survivor benefits, and divorced-spouse benefits are frequently overlooked. I’ve helped clients recover thousands of dollars in annual income simply by filing for benefits they didn’t know they qualified for.
• Supplement with part-time income strategically. If you’re under full retirement age and working, be aware of the earnings test ($22,320 in 2026 before benefits are temporarily reduced). But if you’re past FRA, there’s no earnings limit at all.

I wrote extensively about this mismatch and what it means for your monthly check in Why Social Security’s 2.8% COLA Is Failing Retirees in 2026.

3. Medicare Costs Are Eating Into Retirement Income at an Alarming Rate

This is the financial concern that blindsides people the most. In my 20 years of experience, I’ve watched Medicare premiums, deductibles, and out-of-pocket costs grow at roughly double the rate of general inflation. And 2026 is no exception.

Here’s the 2026 damage report:

• Part B premium: $185/month (standard), up 5.9% from 2025
• Part A hospital deductible: $1,676 per benefit period
• Part D changes: The Inflation Reduction Act’s $2,000 annual out-of-pocket cap on prescription drugs is a genuine win, but many retirees on expensive medications are discovering that their plan formularies have shifted, requiring prior authorizations or higher-tier copays
• IRMAA surcharges: If your modified adjusted gross income exceeds $106,000 (single) or $212,000 (married filing jointly), you’re paying significantly more for Part B and Part D

What I see most often is retirees making one critical mistake: they don’t plan for Medicare costs as a separate line item in their retirement budget. The average 65-year-old couple retiring in 2026 can expect to spend approximately $351,000 on healthcare throughout retirement, according to Fidelity’s annual estimate.

How to Fight Back on Medicare Costs

• Review your plan annually during Open Enrollment (October 15–December 7). The Medicare Plan Finder lets you compare costs based on your specific prescriptions and doctors.
• Manage your IRMAA bracket proactively. Roth conversions done strategically in lower-income years can reduce future RMDs and keep you below IRMAA thresholds. This is one of the most powerful tax-planning moves I implement for clients between ages 63 and 72.
• Consider a Health Savings Account (HSA) if you’re still working and on a high-deductible plan before 65. HSA funds roll over indefinitely and can be used tax-free for qualified medical expenses in retirement—including Medicare premiums (except Medigap).

For more on how premiums are quietly consuming your benefit check, see How Rising Medicare Premiums Are Eating Your Social Security Check.

4. Scams and Fraud Are Targeting Retirees With Increasing Sophistication

According to the FBI’s Internet Crime Complaint Center, Americans over 60 lost more than $3.4 billion to fraud in 2023—a 11% increase from the prior year. The 2024 and 2025 numbers are expected to be even worse. And the scams are evolving faster than most people realize.

In 2026, the most dangerous threats I’m seeing include:

• AI-generated voice cloning scams (“grandparent scams”). Criminals use publicly available audio—from social media, voicemail greetings, even church livestreams—to clone a family member’s voice and call demanding emergency money.
• Fake Social Security suspension notices. These arrive via phone, email, or even official-looking mail, claiming your SSN has been “compromised” and your benefits will be suspended unless you act immediately.
• Medicare “benefits review” phishing. Callers pose as Medicare representatives offering free services in exchange for your Medicare number, which they use for identity theft and fraudulent billing.

Here’s the one rule I give every client: the Social Security Administration, Medicare, and the IRS will never call you and demand immediate action, threaten arrest, or ask for payment via gift cards, wire transfers, or cryptocurrency. Period. If someone does any of those things, hang up.

Protect Yourself in Minutes

• Set up a “my Social Security” account at ssa.gov before a scammer creates one in your name. This also lets you monitor your earnings record and estimated benefits.
• Freeze your credit at all three bureaus (Equifax, Experian, TransUnion). It’s free, takes about 10 minutes each, and prevents anyone from opening accounts in your name.
• Establish a family code word to verify emergency calls. If your “grandchild” calls from a strange number asking for money, ask for the code word. AI can clone a voice, but it can’t guess your secret phrase.

5. The Fear of Outliving Your Money Is Now the Number-One Retirement Worry

The 2025 Retirement Confidence Survey by EBRI found that 48% of retirees are “not confident” they’ll have enough money to live comfortably throughout retirement—the highest level of worry since 2012. And longevity is a big part of the equation: a 65-year-old woman today has a 50% chance of living past 87 and a 25% chance of reaching 94, according to the Society of Actuaries.

Living longer is wonderful. Living longer without adequate income is terrifying. And the math gets unforgiving fast. If you retire at 65 with $400,000 in savings and withdraw $2,000/month (adjusted for 3% inflation), you’ll run out of money before your 83rd birthday—well within many people’s lifespans.

Building a Longevity Safety Net

• Consider partial annuitization. I’m not a blanket fan of annuities—the fees can be brutal—but a Single Premium Immediate Annuity (SPIA) using 25–30% of your savings can create a pension-like income floor that you literally cannot outlive. Shop quotes from at least three carriers.
• Optimize your Social Security claiming strategy as a couple. Coordinating when each spouse claims can add tens of thousands of dollars in lifetime benefits. For example, the lower-earning spouse might claim early at 62 while the higher earner delays to 70, maximizing the survivor benefit.
• Plan for long-term care. Nearly 70% of people turning 65 today will need some form of long-term care, according to the Department of Health and Human Services. A hybrid life insurance/LTC policy purchased in your late 50s or early 60s can be more affordable than standalone LTC insurance.
• Reduce your housing costs. Housing is typically the single largest expense in retirement. Downsizing, relocating to a lower-cost area, or even renting out a portion of your home can extend your savings by years. But be realistic about what staying put actually costs—see this analysis of Aging in Place Costs More Than You Think.

The Bottom Line: Awareness Without Action Is Just Anxiety

These five financial concerns for retirees—inflation erosion, inadequate COLAs, rising Medicare costs, fraud, and longevity risk—are real and measurable. But they are not inevitable sentences. Every single one of them has specific, concrete countermeasures that can significantly improve your financial outlook.

What I tell every client who walks into my office feeling overwhelmed is this: you don’t have to solve everything at once. Pick one item from this list this week. Set up your “my Social Security” account. Run the numbers on delaying your benefits. Review your Medicare plan. Freeze your credit. Schedule a meeting with a fee-only financial advisor or CPA who specializes in retirement planning.

The retirees who navigate these challenges successfully aren’t the ones with the most money. They’re the ones who stayed informed, asked the right questions, and took action before the problems became crises. That’s exactly what you’re doing right now by reading this—so keep going.

About Robert Thompson, CPA, EA (Enrolled Agent)

Certified Public Accountant (CPA)

Robert Thompson is a Certified Public Accountant and IRS Enrolled Agent with over 20 years of experience specializing in retirement tax planning. He has helped thousands of American retirees navigate the tax implications of Social Security benefits, required minimum distributions, 401(k) and IRA withdrawals, and estate planning. At Daily Trends Now, Robert breaks down complex tax rules into clear, actionable strategies that help seniors keep more of their hard-earned money.