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Much of the debate about affordability focuses on young adults trying to buy their first homes or families struggling with childcare. But rising costs also pose a serious threat to retirees, who often must pay higher prices without receiving higher wages.

A new discussion from the National Institute on Retirement Security (NIRS) calls attention to the connection between today’s affordability problems and Americans’ ability to achieve a financially secure retirement.

Christian Weller, a professor of public policy at the University of Massachusetts Boston, said on the organization’s “Retirement in America” podcast that the biggest pressures are not necessarily small, everyday purchases. Instead, they are major expenses such as housing and healthcare.

Those costs can hurt retirement security twice. During a person’s working years, they leave less money available for retirement savings. After retirement, they take a large bite out of income that may be largely fixed.

“Americans are being asked to save more for retirement at the same time they are absorbing more financial risk throughout their working lives,” said Dan Doonan, NIRS executive director and host of the podcast.

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A different affordability problem

Retirees may no longer be paying for childcare or commuting to work, but that does not necessarily make their budgets more flexible.

Property taxes, homeowner’s insurance, rent, utilities, and maintenance costs can continue rising. Retirees who own their homes outright may therefore discover that “mortgage-free” does not mean housing is free.

Health expenses can also become more significant with age. Medicare does not cover every medical cost, and beneficiaries may still face premiums, deductibles, copayments, prescription expenses, and services that are excluded from coverage. Long-term care can create an especially large financial shock.

Older Americans also tend to spend their money differently from the population as a whole. The Bureau of Labor Statistics maintains a research inflation index for Americans 62 and older because expenses such as housing and medical care carry different weights in their budgets. That means the inflation rate retirees personally experience may not always feel like the widely reported national rate.

Retirees have fewer ways to respond. A working family may seek a raise, change employers, or add hours. Someone in their 70s or 80s may be unable to return to work, especially if health problems or caregiving responsibilities are involved.

NIRS also pointed to the financial toll of caregiving. Some people leave the workforce before retirement to care for a spouse, parent, or other relative. That can reduce earnings, Social Security benefits, and retirement contributions while sometimes forcing the caregiver to draw from savings early.

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What retirees can do

For retirees under financial pressure, the most effective steps usually involve the largest expenses rather than simply eliminating small pleasures.

• Housing deserves an early review. Retirees can compare the total cost of remaining in their current home with downsizing, renting, moving to a less expensive community, or sharing housing. The calculation should include taxes, insurance, utilities, maintenance, and moving costs — not just a mortgage payment. Homeowners should also ask their local tax office about senior property-tax exemptions, freezes, or deferral programs. Eligibility rules vary by location.
• Health coverage should be reviewed every year. Medicare Advantage and Part D prescription plans can change their premiums, provider networks, formularies, and out-of-pocket costs. Retirees should compare plans using their actual doctors and medications instead of choosing solely on the monthly premium.
• Savings programs are out there. Lower-income beneficiaries may qualify for a Medicare Savings Program that helps pay Part A or Part B premiums, and in some cases, deductibles and copayments. Medicare advises people to apply even if they believe their income may be too high because state eligibility rules can be more generous than federal guidelines. The Extra Help program can also reduce prescription-drug costs.
• People who have not yet claimed Social Security should consider the long-term tradeoff carefully. Benefits are permanently reduced when claimed before full retirement age, while delaying benefits can increase the monthly payment up to age 70. Delaying will not be practical for everyone, but the decision should be based on health, employment, savings, and household needs — not simply the earliest eligibility date.

Other coping strategies include:

• Checking eligibility for food, utility, transportation, and property-tax assistance.
• Paying off high-interest credit-card balances before withdrawing extra money for discretionary purchases.
• Maintaining an emergency fund for home, vehicle, and medical expenses.
• Discussing withdrawals with a tax professional before taking unusually large amounts from retirement accounts.
• Considering part-time or seasonal work if health and circumstances permit.
• Avoiding major financial commitments for adult children if they could undermine the retiree’s own security.

The broader problem, according to Weller, is that retirement security depends on much more than investment choices. Housing affordability, employment stability, access to workplace savings plans, health costs, and caregiving demands all affect whether workers can save and whether retirees can make that money last.

For retirees already feeling squeezed, there may be no single solution. But tackling the largest expenses, claiming every available benefit, and making careful decisions about Social Security and retirement withdrawals can create more breathing room in an increasingly expensive retirement.