A good thing to do at the end of the year is to look at your finances and make plans for the next year. When you are busy wrapping gifts and planning holiday trips, it can be hard to find time to do the maths, but it is important to do it.
Folks who get Social Security should know that their payments will be changed in 2025 based on how much it costs to live. And it could have an effect on your finances.
Since Social Security checks will only go up by 2.5% in 2025, you should check what you are looking at right now. Therefore, it is now time to learn what that means for your money in the coming year.
If you receive Social Security checks, you must complete this task before the year ends
For millions of people in the US who get Medicare, the cost of Part B will go up from $174 to $185 in 2025. This is something to think about.
If you are on both Medicare and Social Security at the same time and have your Part B premiums automatically taken out of your benefits, this extra $10.30 will lower your 2025 COLA and leave you with a smaller increase.
The good news is that the Social Security Administration (SSA) should send you a letter this month explaining the changes to your every month checks. You can also get to that information online if you have an account on SSA.gov. So, you should be able to see how much of a boost you are getting.
The next step is to make sure that you can handle your money after getting the monthly benefit you are eligible for. If you have been having trouble keeping up with your living costs and think you will be in the same situation in 2025 because of your upcoming Social Security COLA, now is the time to make a plan for next year that will help you do better.
It is not good to feel like you are always behind on your bills or just barely making ends meet. Once you know how much your Social Security payment will be each month for 2025, you can sit down and figure out what changes, if any, you need to make.
Alternative ways to make money besides Social Security checks
For many years, Social Security has been the main source of income for retirees in the United States. Many people who work look forward to the day when they can sit back and enjoy their checks.
It was not meant to cover all of your retirement costs, though, and it may cover a lot less in the future. The latest report from the Social Security Trustees says that the Social Security Trust Fund will run out of money by 2035.
This means that future payments will probably be cut unless politicians do something to stop this. But Social Security checks are not always enough for people who get them.
If this sounds like you, please read about these other ways to make money besides getting monthly payments from Social Security:
- Joining the gig economy to earn extra money.
- Renting out a room in your house.
- Moving to a smaller living place.
- Seeing if it is possible to give up an automobile.
- Make modifications to your Medicare coverage so that it is less expensive.
- Don’t wait if you want to make that last change. Medicare’s open enrollment period ends on 7 December. Therefore, you should take action if you think a new Medicare plan could save you money.
It is in your best interest to start the new year off with a solid financial base. It is suggested that you take some time to figure out how much Social Security you will get and then use that information to make a plan that will help you get to a better place.
