Many people picture retirement as a stress-free period of life. But retirees today are facing a few key financial challenges. Here are three big things today's seniors are coping with -- and how to manage them.

1. Inflation

Inflation has been stubbornly high in 2026, and many Americans are paying more for things like gas, food, and other essentials. And while higher costs are a broad problem, for retirees on a fixed income, they can hurt even more.

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If you're having a hard time managing higher costs, one key thing to do is get onto a budget so you can see where your money is going and make strategic spending cuts. Another thing you may want to do is go back to work in some shape or form. You can use your paycheck to supplement your Social Security benefits and boost your buying power.

2. Economic uncertainty

There's a lot of uncertainty in today's economy. The University of Michigan's Index of Consumer Sentiment fell 3.2% in May on a monthly basis and 7.7% on an annual basis, which is a clear indication that Americans are worried.

Broad uncertainty could lead to a decline in consumer spending, which could fuel a recession. For retirees, the concern there isn't necessarily reduced job opportunities so much as market volatility.

If you're worried about the impact of economic uncertainty on your retirement savings, make sure your portfolio is well diversified and that you don't have too large an allocation in the stock market. At the same time, make certain you have a decent cash buffer to ride out a potential market downturn. A good rule of thumb is one to three years' worth of living expenses.

3. Rising Medicare costs

At the start of the year, Medicare's standard Part B premium rose by $17.90. Other Medicare costs rose, too, like the annual Part B deductible and the Part A inpatient deductible.

You can't necessarily control these rising costs. But you can do your part to keep your healthcare expenses manageable by choosing the right Medicare coverage.

If you're not thrilled with your Medicare Advantage or Part D drug plan, make sure to explore new options this fall when open enrollment kicks off on Oct. 15. At the same time, make certain you understand your current plan's rules so you aren't hit with surprise costs.

If inflation, general economic uncertainty, and rising Medicare costs are wreaking havoc on your finances this year, you're not alone. By budgeting carefully, investing thoughtfully, and being strategic with Medicare, you can do your part to make these challenges much more manageable.