You open the bank statement, see the Social Security deposit, and do the math: it's a little more than last year. Then you look at the gas receipt and the grocery total, and the raise seems to have vanished. Sound familiar?
Where your money went this year
- Your raise: Social Security benefits went up 2.8% in January. For the average retired worker, that's about $56 more a month, to roughly $2,071 ( SSA ).
- Medicare took a bite: the standard Part B premium rose $17.90 a month, to $202.90, and the deductible rose to $283 ( CMS ).
- Prices kept going: overall prices were up 3.4% over the year to July, gas was up 24.6%, and energy overall, including gas and home energy, was up 14.7% ( BLS ).
Here's the thing: $56 minus $17.90 leaves about $38 a month of real raise, while prices rose faster than the 2.8% COLA. That gap is what we're going after.
7 moves that can help
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Mark Medicare open enrollment: October 15 to December 7.
- Why it works: that's when you can switch Medicare Advantage or drug plans for next year ( Medicare.gov ). Plans change their costs and drug lists every year.
- What it can save: comparing your actual prescriptions across plans can save hundreds a year, especially if your medications changed.
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Check whether you qualify for help paying Medicare costs.
- Why it works: there are programs that help people with limited income pay premiums and drug costs. Check the rules for your state.
- What it can save: potentially the full Part B premium, $202.90 a month, if you qualify.
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Apply for heating help before it gets cold.
- Why it works: with energy up 14.7%, heating bills will sting. Federal energy assistance for lower-income households is listed at USA.gov/benefits . Funds can run out, so earlier is better.
- What it can save: help with a winter's worth of heating bills.
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Shop your prescriptions.
- Why it works: the same drug can cost very different amounts at different pharmacies, and a 90-day supply is often cheaper than 30-day refills.
- What it can save: often $10 to $50 a month per prescription. (Illustrative.)
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Claim the new senior deduction.
- Why it works: starting with 2025 returns, people 65 and older can deduct up to $6,000 each (we covered it in April ). If you have tax withheld from a pension or IRA withdrawals, ask whether your withholding can be adjusted for 2026.
- What it can save: depends on your bracket, but it can be hundreds a year.
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Ask about senior discounts everywhere.
- Why it works: utilities, phone carriers, grocery stores and local transit often have senior rates or programs, but you usually have to ask.
- What it can save: $5 to $30 a month here and there adds up. (Illustrative.)
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Cut the driving where you can.
- Why it works: with gas up nearly 25% from last year, combining errands into one trip makes a difference.
- What it can save: a few gallons a month at today's prices.
Who this helps most
- Retirees living mainly on Social Security.
- Anyone on Medicare who hasn't compared plans in a couple of years.
- Households worried about heating bills this winter.
Try this this week: make a list of every prescription you take, with the dose. On October 15, you'll be ready to compare plans in one sitting.
Small moves, real money.
Sources
- Social Security Administration, Social Security announces 2.8 percent benefit increase for 2026 , October 24, 2025
- Centers for Medicare & Medicaid Services, 2026 Medicare Parts A & B premiums and deductibles , November 14, 2025
- U.S. Bureau of Labor Statistics, Consumer Price Index, July 2026 , released August 12, 2026
- Medicare.gov, Open Enrollment
- USA.gov, Government benefits
Prices and program rules change and vary by location. Savings are not guaranteed. Check official program pages for your eligibility.