With an annual Social Security income of less than $20,000, MC—a 77-year-old New Jersey resident—finds it hard to cover basic daily expenses including her rent, utilities, and groceries. She also lives with degenerative vision loss and depends on third-party transportation to run errands, get to medical appointments, and participate in social events.

“A monthly check of $1,667 may sound pretty solid,” said Jessica Johnston, NCOA's Senior Director for the Center for Economic Well-Being, “until you consider that the average rent in New Jersey is $1, 686 for a single person in good health, according to the Elder Index. That doesn’t leave much wiggle room for older adults like MC.”

Or, for that matter, the millions of other older adults whose budgets are shrinking in the face of inflation. Reaching 3.8% in April 20261 , high inflation is not welcome news for the nation’s 61.2 million older adults age 65+. Many are already living on a low fixed income. And nearly 15% of older adults (age 60+) live below the poverty line, based on the Supplemental Poverty Measure.²

What happens when inflation and fixed incomes collide? It can spell trouble for many older adults already struggling to cover basic expenses like food, fuel, utilities, and housing.

What does it mean when someone lives on a fixed income?

Living on a fixed income generally applies to older adults who are no longer working and collecting a regular paycheck. Instead, they depend mostly or entirely on fixed payments from sources such as Social Security, pensions, and/or retirement savings. There is very little flexibility in the amount of income they receive each month. Approximately 40% of older Americans rely solely on their Social Security income to get by,⁴ which averages about $1,913 monthly.⁵

Approximately 40% of older Americans rely solely on Social Security payments to cover their basic needs.³ These payments average $2,081.16 monthly for retirement benefits.⁴

In times of economic instability—such as high inflation—living on a fixed income becomes especially challenging for people. As expenses rise, their ability to pay for them stays the same. For older adults on a tight budget, an unexpected medical emergency or household repair can tip the scales and lead to financial disaster that’s hard to recover from.

How can I survive inflation on a fixed income?

If you or an older adult you care for is burdened with bills and facing economic insecurity, there are steps you can take to stretch your budget.

1. Eliminate debt: Older Americans are carrying more unpaid financial obligations than ever before, with the average credit card balance for people age 61-79 reaching $6,795 in 2025.⁵ If you’re a senior on a fixed income, it can be overwhelming trying to keep up with snowballing credit card payments. That’s why credit counseling may be a solution worth exploring. Working one-on-one with a trained counselor can help you get your debt under control and create a manageable repayment plan. Securing a lower monthly payment, and ultimately eliminating your credit card debt altogether, can free up extra funds to apply toward other expenses.
2. Create a budget calendar: Tracking your finances is important at any age and income bracket. But when you live on a fixed or limited income, it’s essential to know exactly where your money is going. A budget calendar is a visual tool that allows you to see what your income is each month, when it will arrive, and what your expenses are. This helps you gain a clearer picture of your financial activity—so you’re less inclined to spend money you simply don’t have. A budget calendar also gives you a greater sense of control over your finances, which can help you feel less worried about money.
   
   Making your own budget calendar is easy and something you can do on your own (a simple wall calendar will do just fine). Learn how to create a budget calendar here.
3. See if you qualify for food assistance: In 2023, about 12.6 million seniors and older adults did not have reliable access to nutritious food.⁶ And as grocery store prices rise, the issue of food insecurity among seniors will only get worse. SNAP, or the Supplemental Nutrition Assistance Program, offers a financial safety net to older adults who might not otherwise get enough to eat. This need-based program serves many seniors living on a low fixed income. Adults who qualify receive monthly financial benefits loaded onto an Electronic Benefits Transfer (EBT) card. This card can be used just like a credit or debit card at Walmart, other grocery retailers, and even farmers markets to purchase eligible food items.
4. Consider taking on a part-time (or full-time job): A growing number of older adults are either returning to the workforce or seeking employment for the first time. There are several paths to employment for older adults. These include online job boards, newspaper ads, job fairs, and networking. 
   
   NCOA's employment tool, Job Skills CheckUp, helps older adults get tips on how to succeed as a mature worker.  All you have to do is tell us about your goals, describe your current employment situation, and the Job Skills CheckUp will create a personalized plan to help you find job openings, build a professional network, prepare for job interviews, and more.

And remember: SNAP is a vital resource, too. That’s what MC learned after visiting her local Benefits Enrollment Center.

Together with other financial assistance programs that staff helped MC find and apply for, her SNAP benefits contribute to $2,175 in total monthly value that she otherwise would have overlooked.

Learn more about SNAP and other benefits programs

Millions of older adults on a fixed income are likely eligible for, but not enrolled in, programs that can help them afford everything from healthcare and prescriptions to food and utilities. While these supplemental benefits may not close the financial gap completely, they can provide some breathing room for those who are barely scraping by month to month. Some assistance programs can potentially add hundreds or even thousands of dollars to your budget every year.

Researching money-saving programs for seniors may feel like an overwhelming task. But NCOA has made it simple for you with BenefitsCheckUp®. This easy-to-use digital tool can help you browse benefits in your area, such as SNAP and other nutrition programs as well as tax relief, transportation, and education programs. You can find information on a broad array of offerings, all in one convenient place.

Use BenefitsCheckup for yourself—or if you're a caregiver, friend, or neighbor who knows of an older adult who needs help. If you or they qualify for assistance, we’ll give you detailed information on how to apply.

Sources

1. U.S. Bureau of Labor Statistics. Consumer Price Index. April 2026. Found on the internet at https://www.bls.gov/cpi/

2. Meals on Wheels America. By the Numbers: America’s Aging Population Fact Sheet. April 10, 2026. Found on the internet at https://www.mealsonwheelsamerica.org/research/americas-aging-population-fact-sheet/

3. Medicare Rights Center. Older Americans Month: Supporting Access to Care. May 26, 2026. Found on the internet at https://www.medicarerights.org/medicare-watch/2026/05/26/older-americans-month-supporting-access-to-care

4. Social Security Administration (SSA). Monthly Statistical Snapshot, April 2026. Found on the internet at https://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/

5. Forbes Advisor. U.S. Average Credit Card Debt In 2026. April 29, 2026. Found on the internet at https://www.forbes.com/advisor/credit-cards/average-credit-card-debt/

6. Feeding America. Senior Hunger Research. May 14, 2025. Found on the internet at https://www.feedingamerica.org/research/senior-hunger-research