7 Simple Ways to Make Your Social Security Check Go Further Right Now
Written by
Jordan Rosenfeld
Edited by
Angela Corry
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For millions of retirees, as everyday costs continue to rise, many are finding that their monthly Social Security check doesn’t stretch as far as it once did.
The good news is that even with a fixed benefit, there are still ways to create more breathing room without taking on unnecessary risk or making drastic lifestyle changes. GOBankingRates spoke to experts who offered these seven tips to stretch your benefits.
1. Reduce Your Largest Fixed Expense First
Retirees are likely to save the most money reducing their fixed expenses — the big stuff, like housing — over the smaller, more variable expenses — like dining out, according to Jay Zigmont, a CFP and founder of Childfree Trust.
Take housing. “Ideally, your housing costs should be less than one-third of your take-home pay,” Zigmont said.
If it’s more than one-third, Alex Barba, founder of Lifeforce Financial, suggested downsizing to a lower cost home or moving to a lower cost city or state. Moves like this can free up between $500 and $2,000 per month, he said.
2. Cut Recurring Bills That No Longer Serve You
When income is fixed, the only thing you can control is your expenses, Zigmont said.
“It’s not like you can work overtime to raise your Social Security benefit.”
Look for recurring bills and unnecessary expenses that you don’t need to make. Barba said a common such expense is a life insurance policy you no longer need, what he calls “a liability masquerading as an asset.”
Other common expenses to cut include landlines and cable bundles and reduce high-interest debt, he said.
3. Take Advantage Of Overlooked Benefits And Assistance
Many retirees qualify for programs that can reduce everyday costs but never apply, Zigmont said. Look into your state, city and county agencies for tax breaks or financial assistance.
Additionally, Barba said that federal programs, ranging from Medicare savings programs (MSPs), which cover Part B premiums, to SNAP for nutrition needs, are often underutilized among retirees.
Even one approved program can significantly reduce monthly expenses.
4. Lower Healthcare And Prescription Costs Strategically
Healthcare is one of the fastest-growing expenses in retirement, making it critical to review regularly.
Zigmont cautioned against cutting blindly, however, as you still need to make sure you have appropriate healthcare coverage.
Look into programs like GoodRx and NeedyMeds for prescription drug cost support, compare Part D plans annual and investigate hospital financial assistance programs, Barba recommended.
5. Consider Safe Ways To Supplement Your Income
For some retirees, adding even a small amount of income can make a meaningful difference.
“I tend to recommend looking at a part-time job over something like driving for Uber, as many side gigs come with additional expenses that are often overlooked,” Zigmont said.
Barba added that low-risk financial tools can be a way to maximize growth on “idle cash,” such as I-Bonds, short-term CDs or Treasuries. Part-time consulting can also provide income without Social Security benefit reduction if done below the earnings limit.
The key is avoiding high-risk moves that could jeopardize your emergency funds or overall financial stability.
6. Plan For Inflation
One challenge retirees face is that Social Security adjustments don’t always match real-world costs. “While the rate of inflation is coming down, very few prices are coming down, Zigmont said.
“You should expect your expenses to keep going up.”
Barba recommended building inflation into your planning and adding 3% to 4% annually to healthcare costs and 2% to 3% to all other categories.
7. Focus On What You Can Control
While you can’t increase your Social Security check, you can make smarter decisions about how far it goes. The retirees who stay ahead financially are the ones who actively manage how those benefits are used.
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