First Federal Bank Blog

How to Prepare for your 2025 Social Security Payments Today

Written by First Federal Bank | Jul 24, 2024 2:00:00 PM

If you are in your retirement years and rely on Social Security payments, waiting to learn what the cost of living adjustment (COLA) will be each year can be anxiety inducing. It’s complicated, and difficult to plan when the amount of your payments can change. Yahoo Finance offers some projections for 2025, as well as guidance on what you can do to prepare, regardless of what the COLA amount turns out to be:

Apply for food benefits.  

Some Social Security recipients qualify for Supplemental Nutrition Assistance Program (SNAP) benefits if they meet the eligibility criteria. Formerly known as food stamps, SNAP benefits can help you pay for groceries when the budget is really tight. You can also look into the U.S. Department of Agriculture’s Commodity Supplemental Food Program (CSFP), which provides eligible low-income seniors over age 60 with a monthly food package including cheese, fruits and vegetables.

Apply for Medicare help. 

To allay healthcare costs, you can get help from the state to pay your Medicare Part A (hospital insurance) and Part B (medical insurance) premiums through a Medicare Savings Program. If you qualify, Medicare Savings Programs might also pay your Part A and Part B deductibles, coinsurance and copayments, according to Medicare.gov. When you apply, your state determines which program(s) you qualify for. Even if you don’t think you qualify, you should still apply.

Earn extra income.

One way to deal with financial struggles is to increase your income. Numerous part-time jobs and side hustles are suitable for seniors, including library technicians, tutors, consultants and substitute teachers. Just keep in mind that if you have not yet reached full retirement age, you will face an earnings test that could reduce your Social Security benefits if your outside income hits a certain threshold.

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Even if you have an IRA or 401(k), and do not rely solely on Social Security, these tips can help you get the most from your payments. The more you can stretch your funds, the more you can enjoy your retirement years. If you need some direction, a financial advisor can offer sound advice specific to your situation.