5 Things You Still Can't Afford in 2026

Understanding the Impact of Inflation on Social Security Beneficiaries

For many individuals who depend on Social Security as their primary source of income, the annual cost-of-living adjustment (COLA) plays a crucial role in maintaining financial stability. This adjustment is designed to help offset the effects of inflation by increasing benefits based on the Consumer Price Index for Urban Wage Earners (CPI-W). However, the current system has its limitations, especially when it comes to accurately reflecting the real-world expenses faced by seniors.

The CPI-W measures inflation across a broad range of goods and services, but it doesn’t always capture the specific needs and spending patterns of older adults. For example, categories such as housing and medical care, which make up a significant portion of seniors’ budgets, often experience higher inflation rates than the overall index. This discrepancy can lead to a situation where even with COLAs, the purchasing power of Social Security benefits has declined significantly over time.

According to the Senior Citizens League (TSCL), the average Social Security payment has lost an estimated 20% of its buying power since 2010. This trend is expected to continue, particularly if additional tariffs are implemented. While companies have absorbed most of the costs associated with these tariffs so far, there is a growing concern that these expenses will eventually be passed on to consumers.

Key Areas Where Seniors May Face Increased Costs

Several areas of daily life could become more unaffordable for seniors due to rising prices. Here are some of the most notable categories:

• Utility Bills: Although gas prices at the pump have decreased, other energy costs have been on the rise. Electricity prices increased by 5.5%, and utility piped gas jumped by 13.8% from July 2024 to July 2025, according to the Bureau of Labor Statistics (BLS). Aging infrastructure and potential tariffs on imported energy may further drive up these costs.

• Cars: The BLS reported a 4.8% annual increase in used vehicle prices, driven by demand for used cars amid high new car prices. New car prices have only risen by 0.4% over the past year, but the average MSRP is over $50,000, making many buyers unable to afford new vehicles. Tariffs on imported autos could accelerate this trend in 2026.

• Dental Services: Medical services have seen significant inflation, but dental care is particularly concerning because it is typically not covered by Medicare. Prices for dental services increased by 4.8% annually, according to the BLS, leaving seniors to bear the cost of routine care.

• Coffee: Despite being a discretionary purchase, coffee is a necessity for many. Prices have risen by 14.5% annually, according to the BLS. Given that over 99% of coffee in the U.S. is imported, tariffs could keep prices high in 2026.

• Shoes: Footwear inflation has only risen by 0.9% over the past year, but this may change. Companies like Nike and Brooks Running have indicated that they plan to implement price increases due to tariffs, potentially impacting seniors who rely on regular footwear purchases.

Preparing for the Future

As these trends continue, seniors may find themselves facing difficult choices. Many might opt to extend the life of their current shoes or switch to more affordable brands. Similarly, they may need to cut back on other discretionary purchases to stay within budget.

While the COLA provides some relief, it’s clear that more comprehensive solutions are needed to address the unique financial challenges faced by older adults. By understanding these trends and planning accordingly, seniors can better navigate the economic landscape and maintain their quality of life.