Ease the squeeze on your retirement income plan
Long version
Rising prices may not dominate headlines the way they did a year or two ago, but if you’re retired, you’re probably still feeling them. Even when overall inflation cools, the costliest expenses — like health care, utilities, insurance and property taxes — tend to rise faster than broad inflation numbers suggest. That creates a squeeze that can make you question whether your income plan is built to last.
Fortunately, you often can adjust without drastic cuts that affect your lifestyle. Start by understanding where the pressure comes from and how to build more flexibility into your plan.
Inflation hits retirees differently. You’ve likely noticed your grocery bill, prescription drug costs and heating expenses haven’t returned to “normal.” Even small increases compound over time and can chip away at your buying power.
If your income plan was created years ago, it may assume lower inflation or relatively stable price increases over time. Recent years have shown that’s not always the case.
Why some income plans feel strained. Any plan relying on fixed withdrawals or rigid budgets can feel tight when living costs rise. If you’re drawing from investments, you may hesitate to increase your withdrawals because of market volatility. And if you depend on fixed income sources like Social Security or a pension, yearly cost of living increases may not keep pace with your expenses. You might live 25 to 35 years in retirement, giving small annual cost increases decades to add up.
What you can do without sacrificing stability. A few adjustments can help you stay ahead of rising costs and maintain your financial confidence.
First, review your withdrawal strategy. Ask your financial advisor about flexible approaches that increase income when markets and portfolios perform well and pull back during tougher times. This protects your long-term plan with room to respond to rising prices.
Next, rebalance your portfolio. You may uncover opportunities to shift toward investments with more consistent income or better tax efficiency. Sometimes a small tweak can generate extra cash flow without increasing overall risk.
Finally, look at your income sources. You may be less affected by rising costs if you delay taking Social Security, work a part-time job, add inflation-protected bonds or create predictable lifetime income with annuities, if they’re appropriate for your situation.
Don’t overlook health care: Health care costs often grow faster than general inflation. Medicare premiums and out-of-pocket expenses can rise annually, and the need for long-term care remains a big financial uncertainty for retirees. Building health care-specific inflation into your plan now can help prevent surprises later. Any savings you have in a health savings account can help you cover health care costs. And many pharmaceutical companies offer financial assistance programs to help pay for costlier medications.
Stay flexible and informed: Today's retirements look different from those of even a decade ago. The key is staying flexible, reviewing your plan regularly and making small adjustments before pressure builds. A financial advisor can help you find the right approach to navigating rising costs without disrupting the life you’ve worked hard to build.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
Edward Jones, Member SIPC
Word count: 504
Short version
PSA: Ease the squeeze on your retirement income plan
Release: March 23, 2026
Inflation has slowed, but many retirees still feel the effects of higher costs, especially for essentials like health care, utilities and insurance. They can tighten your income plan and make you wonder whether it can keep up over time.
What matters is how you respond — and you have options.
Start with your withdrawal strategy. Consider a flexible approach for investment withdrawals that can adjust based on how your portfolio is performing. It helps manage rising prices without jeopardizing long term plans.
Next, look at your investments. Rebalancing your portfolio even slightly may help steady your income or improve tax efficiency.
You can also strengthen your income base by delaying Social Security or leaning on your health savings account. Consider adding inflation protected bonds or using fixed-rate annuities for predictable lifetime income – if either fits your situation.
Finally, make sure you account for rising health care premiums and out of pocket costs now so they don’t catch you off guard later.
A financial advisor can help you build flexibility into your plan to feel confident — even when costs keep rising.
This content was provided by Edward Jones for use by (FA’s NAME), your Edward Jones financial advisor at (Branch address or phone#). Member SIPC
Words: 175 (excluding FA’s name, address/phone number)