10 Expert-Approved Strategies Retirees Are Using To Beat 3% Inflation Now
5. Delaying Social Security
Another smart inflation strategy is delaying Social Security, Carey said. For every year you delay beyond your full retirement age, your benefit increases by about 8%.
“Life expectancy is important here though,” Carey pointed out. “The break-even age for most people is 78 years old in terms of how long they must live to recoup the lost years of missed Social Security payments.”
6. Paying Off High-Interest Debt
Retirees with the most financial freedom have either paid off or are actively paying down high-interest debt such as credit cards, personal loans and adjustable-rate debt, Stroup said.
“Low-interest debt, like fixed-rate mortgages, may be less urgent during moderate inflation, as investment returns could exceed interest costs,” he noted. A balanced approach tailored to individual cash flow and risk tolerance is key.
7. Shopping Around for Healthcare
Healthcare costs can take a big bite out of retirement income, but savvy retirees shop around. Stroup advised comparing Medicare supplements, Part D drug plans and health savings account (HSA) options each year.
“Bundling insurance, evaluating in-network providers and reviewing preventative care options helps control costs while maintaining coverage in a rising-price environment,” he said.
8. Making Creative Living Arrangements
While many retirees downsize to lower housing costs, others get more creative. Stroup said that shared-living arrangements or co-housing communities can help retirees split housing, utility and transportation expenses.
“Others use bartering skills, multi-generational housing or vacation rentals to generate supplemental income,” he said. “Creative approaches like these preserve lifestyle while stretching fixed retirement dollars further.”
9. Adopting Smart Tax Strategies
A growing number of retirees are making Roth conversions, which Carey said “can save thousands of dollars if done right.” Converting in lower-tax years means future required minimum distributions (RMDs) are taxed at lower rates.
Carey also recommended withdrawing from taxable accounts first, delaying IRA withdrawals or blending Roth withdrawals to manage brackets efficiently.
10. Making Smart Everyday Moves
Finally, small lifestyle adjustments go a long way. Stroup said retirees who track recurring expenses, buy in bulk, meal plan, use public transportation and limit luxury subscriptions can stay ahead of rising costs.
“Even small lifestyle tweaks compound over time, helping retirees maintain comfort while inflation slowly erodes purchasing power,” he said.
Inflation may not be disappearing anytime soon, but retirees who stay flexible, proactive and strategic are finding ways to preserve their lifestyle without depleting their savings.
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