Last October, seniors on social security received some good news – that their benefits would increase by 5.9% in 2022, marking the largest COLA recipients to have received in years. But while a 5.9% increase may seem generous, it does not do seniors much good.
The reason? Inflation has risen at a much faster pace. In February, the price of consumer goods rose by 7.9% on an annual basis. And we may get several months of price increases across most categories of spending, from groceries to gas.
If your Social Security raise has been deficient so far this year, you are in good company. Here’s an easy way to increase your income – and prevent a scenario where you end up struggling financially.
Do not rush to loot your nest egg
If your social security benefits do not cover your cost of living, you may be inclined to start taking larger withdrawals from your IRA or 401 (k) plan. But it can end up being a dangerous move.
The money you have pulled away in savings is supposed to stick to you throughout retirement. And without a crystal ball, you can not predict how many years that money will cover. But if you start pulling extra funds now to cope with higher living costs, you may run out of savings too early and leave yourself in a serious situation later in life.
If you own a home, you may have other options for generating income. These could include renting any space, such as a finished basement or garage, or even renting a parking space if you have an extra in your driveway. But not everyone owns a retirement home. And even if you do, your home may not be conducive to welcoming a tenant.
Therefore, getting a part-time job can be a more sustainable solution. These days, the job market is full of opportunities and it extends to the concert economy. So whether you are willing to commit to a preset schedule or want something flexible, chances are you will find some kind of job that serves the very important purpose of increasing your income at a time when you really need it. before that.
Of course, the benefits of part-time work go beyond just a paycheck. Keeping a job down can end up being a good thing for your mental health as well as your physical health. And it can actually help you save money on medical costs and thus stretch your income.
In addition, work is a cheap way to stay entertained. And at a time when it may not be easy or possible to spend more on leisure time, it’s important.
Give yourself a more generous pay rise
Your increase in social security may fall short this year due to violent inflation. But that does not mean you can not create your own income boost. Before you start raising extra money from your nest egg, try to see what job opportunities are available. You may be surprised at how easy it is to find a job that fits your needs and schedule.