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Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.<\/em><\/p>\n It comes as no surprise that Americans are paying more for necessities than they did last year (1).<\/p>\n In response, they\u2019re tightening their belts \u2014 so much so that a Lightspeed survey found that 1 in 4 consumers will shop on Black Friday only for everyday essentials such as groceries, toiletries and household basics (2).<\/p>\n Many working Americans aren\u2019t stretching their dollars further in retirement either. Only 55% of adults surveyed by Prudential in 2025 said they\u2019ve factored inflation into their retirement planning (3).<\/p>\n Despite this lack of planning, 89% of those surveyed have \u201chigh confidence\u201d in covering essential retirement expenses. Prudential referred to this as a \u201cconfidence paradox,\u201d where consumers feel confident without taking the proper steps to ensure retirement readiness.<\/p>\n \u201cFeeling ready is very different than actually being ready,\u201d Caroline Feeney, global head of retirement and insurance for Prudential, told CNBC (4).<\/p>\n \u201cPeople feel ready, so they\u2019re not taking the necessary action and plans now to start saving and leaning into closing what may be a real retirement gap for their futures that they\u2019re not aware of.\u201d<\/p>\n Regardless, boomers should consider inflation when planning for their retirement.<\/p>\n A lack of planning could become even more challenging. Baby boomers are in the midst of \u201cpeak 65,\u201d with more than 11,200 Americans turning 65 every day through 2027 (5).<\/p>\n While 2026 brought a 2.8% cost-of-living adjustment (COLA) for Social Security benefits (6), it may not be enough to cover the rising costs of health care, housing and food. For example, the standard monthly premium for Medicare Part B rose from $185 in 2025 to $202.90 in 2026 \u2014 a 9.7% increase (7).<\/p>\n The war in Iran has compounded the problem, leading to spikes in everything from travel and transportation costs to grocery prices to mortgage rates (8). The result? A lack of affordability for many Americans \u2014 particularly older adults on a fixed income.<\/p>\n What\u2019s more, Goldman Sachs Asset Management research reveals that retirees\u2019 spending increased 3.6% annually from 2000 to 2023, while the consumer price index rose 2.6% over the same period (9).<\/p>\n Many people think they\u2019ll spend less once they retire, certified financial planner Uziel Gomez, founder of Primeros Financial in Los Angeles, told CNBC, adding, \u201cWhen in reality, they usually spend more because they have more time to do a lot of the things that they enjoy doing.\u201d<\/p>\n Here are a few ways to prepare, regardless of whether you\u2019re retiring now or in 20 years.<\/p>\n Read More: Taxes are changing under Trump\u2019s \u2018big beautiful bill\u2019 \u2014 4 reasons why retirees can\u2019t afford to waste time<\/a><\/strong><\/p>\n Your golden years are meant for enjoying life, not stressing over every dollar. With a little planning and a realistic budget, you can make your nest egg work harder for you once the steady paychecks stop.<\/p>\n For some retirees, that might mean cutting housing costs by downsizing and redirecting those savings toward travel or hobbies.<\/p>\n Because there\u2019s no one-size-fits-all strategy, budgeting apps like Monarch Money can be an excellent tool for tracking your spending<\/a> and meeting your financial goals.<\/p>\n Monarch Money<\/a> puts all your finances under one roof, from your banking statements to your investments. You can also add separate or joint accounts to your dashboard, which can be great for tracking grocery runs for couples on a fixed income.<\/p>\n The app is also well reviewed. Both Forbes and the Wall Street Journal ranked Monarch Money as their best budgeting app for 2025.<\/p>\n And the best part? Monarch Money offers a seven-day free trial so you can see if it\u2019s right for you. If you like what you see, you could then snag 50% off your first year with code WISE50<\/a>.<\/p>\n If you want a bit more guidance, a financial planner can help tie everything together. They\u2019ll look at your full financial picture and map out a plan that makes your retirement dollars work smarter.<\/p>\n According to the Prudential survey, people who work with a financial advisor are more confident about their financial security and have a clearer vision for retirement than those who don\u2019t.<\/p>\n And finding a vetted financial advisor is now easier than ever, thanks to platforms like Advisor.com<\/a>.<\/p>\n All you have to do to get started is answer a few basic questions about your current financial situation and future goals. Then, Advisor.com\u2019s AI-powered matching tool<\/a> will comb through its network of fiduciaries to find the best match for you \u2014 all for free.<\/p>\n From there, you can set up a free, no-obligation consultation<\/a> to see whether they\u2019re the right fit for you.<\/p>\n Another factor to consider is your portfolio\u2019s resiliency to market shifts and instability. A well-diversified portfolio typically includes a mix of stocks and bonds, but alternative assets \u2014 like gold \u2014 are becoming progressively more accessible to average Americans.<\/p>\n The precious metal has long been viewed as the ultimate safe haven \u2014 and has proven its mettle by hitting an all-time high this year, with some investors predicting even higher prices to come throughout 2026 (10).<\/p>\n One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold<\/a> \u2014 making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.<\/p>\n Download your free information guide today to learn how to get up to $10,000 in free silver<\/a> on qualifying purchases.<\/p>\n Just keep in mind that gold is often best used as one part of an otherwise well-diversified portfolio.<\/p>\n While experts note that the COLA can help retirees tackle inflation better than most financial products, older Americans are still struggling.<\/p>\n \u201cA 20% lift over four years is life-changing, even though it might not match the economy itself,\u201d David Freitag, a financial planning consultant and Social Security expert at MassMutual, said of the recent cost-of-living adjustment, adding, \u201cThese are significant increases that make a difference in people\u2019s lives (11).\u201d<\/p>\n Yet according to a survey conducted by AARP in September, only 22% of people aged 50 and above feel the cost-of-living adjustment is enough to keep up with inflation, with almost three-quarters (72%) saying the COLA should be 5% or higher (12).<\/p>\n As you get closer to retirement, every dollar starts to matter more. Although budgeting and planning ahead help, you could also tap into deals and discounts tailored to older Americans.<\/p>\n For example, senior-focused organizations like AARP<\/a> offer discounts on almost everything \u2014 from prescriptions and dental plans to travel, entertainment and insurance.<\/p>\n AARP can also help you make informed financial and health decisions.<\/p>\n AARP members get access to guides that can help you make the most of Social Security<\/a>, choose the right Medicare plan and uncover other government benefits \u2014 potentially saving you thousands.<\/p>\n Sign up with AARP today and get 25% off your first year<\/a>.<\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our<\/em> editorial ethics and guidelines<\/em><\/a>.<\/em><\/p>\n AARP (1<\/a>), (12<\/a>); Lightspeed (2<\/a>); Prudential (3<\/a>); CNBC (4<\/a>), (8<\/a>); Alliance for Lifetime Income (5<\/a>); Social Security Administration (6<\/a>); Centers for Medicare & Medicaid Services (7<\/a>); CBS News (9<\/a>); Reuters (10<\/a>); Goldman Sachs Asset Management (11<\/a>)<\/p>\n