Social Security recipients who got used to the historically high 8.7% cost-of-living adjustment in 2023 must adapt to a much smaller increase this year. The 2024 COLA is 3.2%, and a lot of seniors aren’t happy about it. Nearly two-thirds of those surveyed by The Senior Citizens League said the 3.2% COLA is inadequate to cover the rising cost of housing, medical expenses and other essentials. This puts even more pressure on them to stretch their Social Security checks.
The average Social Security retirement check was $1,862.03 a month in February 2024, according to the Social Security Administration. To put that number in perspective, consider that the average household spends $6,081 a month, according to the most recent Consumer Expenditures survey from the U.S. Bureau of Labor Statistics. That’s a huge gap — even for retired couples who have paid off their mortgages and cars and no longer have to support their kids.
If you need to stretch your Social Security money even further in 2024, here are four of the best ways to do so.
Get Rid of the Second Car
In most cases, there’s no reason for a retired couple to own two cars because you no longer have to drive to work or split errands. Even if both cars are paid off, you’re still spending money on gas, insurance, maintenance and repairs. Getting rid of your second car could result in hundreds or even thousands of dollars in savings every year.
Cut Down on Medical Expenses
Financial experts recommend checking with your healthcare provider to find out which fees can be waived and whether they offer discounts for financial hardship. It’s also a good idea to request an itemized medical bill to make sure you weren’t incorrectly charged or double charged for a medical service or procedure.
Downsize
Downsizing to a smaller, more affordable home in retirement can cut your expenses in a big way, allowing you to devote part of your Social Security check to other things. If you haven’t already downsized, now is a good time to do so because you might be able to sell your current home for a big profit due to high home prices. You should also consider moving to a more affordable place to stretch your money even further.
Check With Local Help Organizations
If you’re having a hard time paying for food, utilities and other essentials, contact your Area Agency on Aging, which can provide resources on how to save money and get financial help. For information, visit the National Association of Area Agencies on Aging at www.n4a.org. Seniors also can receive free or low-cost meals and other food delivered to them from Meals on Wheels. According to the Home Instead website, top priority is given to homebound seniors who are unable to get food on their own or prepare their own meals.
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John Csiszar contributed to the reporting for this article.