All pensioners who receive their Social Security payment in United States see inflation as a big problem. This is because the monthly SSA check is totally static. Because it is static, it does not change month after month. As a usual rule, workers’ salaries may increase over the months. In the case of pensioners, this does not happen. For that reason, sometimes people who receive their Social Security money may have problems with inflation.
The Social Security Administration uses the COLA to alleviate these problems, but it is not enough. The COLA increase is only once a year and price inflation is constant. Since the increase in money needed is monthly, sometimes pensioners need little tricks and tips to have enough money all the time. Thanks to a series of tips, you can stretch your pension check and pay all your bills.
Tips for Stretching Your Social Security Check
There are many tips to follow to stretch your Social Security check. Here we are going to tell you three fundamental tips to make your retirement payout longer than it seems.
- Don’t spend money unnecessarily: this tip sounds silly, but it’s not. If you have a low pension, it is best not to spend money on unnecessary things. Cooking at home instead of going to a restaurant is a good option. Stop spending money on streaming services or cable TV as well. It’s about taking a good look at what we spend money on and checking if it’s really necessary or not.
- Add some extra income: There are ways to earn extra money each month. If your Social Security isn’t enough, you can always rent out a room in your house, for example. You can also look for some way to invest some of your money to get a good income in the future. The important thing is to do everything well thought out and not in a crazy way.
- Apply for your Social Security later: Don’t make the mistake of applying for your retirement benefit at age 62 if you don’t have a good amount. This will cause you to receive only 80% of the total money. Therefore, you can apply for your benefit at 67 and thus receive the full amount of money you are entitled to.
With these tips you will be able to have a larger amount of money with Social Security. Remember, however, that in October the COLA increase for next year 2023 will be announced. You should keep an eye out to see what the extra percentage you will receive starting in January.