How To Further Stretch Your Social Security Inflation Check During Inflation
~~Social Security inflation check~~
While prices are rising, your check stays the same, it’s difficult to imagine that anyone in the country hasn’t felt the burn of rising prices. But for one particularly vulnerable group,(Retiree’s) the dollar compromises the buying power which is very painful. For seniors living on a fixed income, high inflation can be a real problem. Daily expenses become more and more expensive while their incomes stay the same. This can make it difficult to stretch their Social Security inflation check to cover all of their costs. However, there are a few ways that seniors can make their Social Security inflation check stretch further during times of high inflation. To know more about what exactly you can do to keep up with rising costs, we gathered below, a variety of expert-approved best tips on how to stretch your social security inflation check during inflation. Read also 3 Crucial Things You Must Do After Retirement – Your Future Self Will Thank You!
6 Ways To Stretch Your Social Security Inflation Check Further During Inflation
After some period of low inflation, many retirees are now concerned about rising prices. Costs for cars, food and gasoline are up, mainly because demand spiked when the economy reopened after the worst of the pandemic. Across country it’s a huge concern, especially with the Consumer Price Index at 5% to 5.5%, the highest seen for more than a decade. In this article, you will be taken through six best ways to stretch further your social security inflation check during inflation. Read also 31 Major Retirement Threats To Avoid And Retire Comfortably
Tips To Extend Further Your Retirement Benefits During Inflation
1. Earn Extra Income While on Social Security Benefits
If it’s not possible to cut spending, you can improve your standard of living a lot by earning just a little extra income. If you have some extra time on your hands, you might consider taking on a part-time job or starting a small business. Any extra income can help offset the effects of inflation and make it easier to cover your costs, thereby, stretching further your social security inflation check. There is a common misconception that you can’t earn income and collect benefits simultaneously, but that’s a Social Security myth. For this year, the limit on earned income is $19,560 for recipients below full retirement age and $51,960 in the year when you reach full retirement age. Your benefit payment is reduced for the year if you exceed these limits. After that, however, there is no penalty for earned income at any level. Read also 3 Key Steps To Becoming Financially Independent For Early Retirement
2. Cut The Spending Of Your Social Security Money
There are two ways you can create breathing room in budgets, earn more money or spend less of your social security check. For Social Security recipients on shoestring budgets, there might not be a lot of excess to live in, but if there is, that’s the best place to start. One way to stretch your Social Security inflation check is to cut back on non-essential expenses. Take a close look at your budget and see where you can adjust the fat. For instance, you might cancel your cable subscription or eat out less often. By reducing your overall expenses, you will have more room in your budget to cover the essentials. Read also 10 Expert-Approved Tips For Retirement Planning(Before You Start Saving)
3. Put Off Claiming for as Long as Possible
If you haven’t claimed your benefits yet and you have enough savings to get you through this period of high inflation, you would be wise to put off collecting your benefits until prices start to fall. You can claim them anytime between ages 62 to 70. Claiming at age 70 will maximize your monthly benefit amount. Your benefits stop increasing at your 70th birthday whether you claim or not, but they grow every month you put off collecting before then. Run a timing report to show you all your options at different times between ages 62 and 70.Claiming your Social Security benefits when the time is right offers significant opportunities to increase your lifetime earnings. The Social Security Administration (SSA) makes it easy with its Delayed Retirement Credits tool. Read also 4 Easy Ways To Avoid Wasting Money In Retirement – A Sure Way Solution To Running Out Of Money In Retirement
4. Shop the lows.
One thing to keep in mind about abstract numbers like CPI is that they don’t tell the whole story. While the cost of everything in aggregate has gone up, individual items may not have gone up very much and in some cases may have even deflated. As an instance, in South Florida, the cost of utilities, transportation and housing have gone higher. The cost of fruits and vegetables, however, is less than it was in the previous year. When and where you are able to substitute staples, you can save some money, there by helping you stretch further your social security inflation check. Read also 8 Most Essential Things You Need To Know Before Retirement
5. Get the Most Out of Spousal Benefits
If you are or were married, there are special considerations that can have a big impact on the size of your check. Make sure you understand the rules of spousal claiming, as that may have a significant effect on your monthly income during retirement. The rules are too complex to outline in this article, but the Social Security Administration lays them out on it’s “Benefits For Your Family page” and they apply to you even if you are not still married. If you are a divorced spouse, you may be able to claim benefits using a divorced spouse’s working record.
6. Look For Bright Spots in the Consumer Price Index
Economists gauge inflation by measuring changes in the consumer price index (CPI). The rate they come up with is an average of goods and services scattered across the entire economy. Within the average, there are highs and lows. Read also How To Avoid Social Security Taxation While Still Earning Money In Retirement
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