LAS VEGAS (KTNV) — If you receive Social Security, there’s some modest good news this year.
Monthly benefits are increasing by 2.8%, which works out to an average of about $56 more per month.
The boost is meant to help seniors keep up with rising costs, but with prices still squeezing household budgets, many retirees are wondering how far that extra money will really go.
WATCH | Shakeria Hawkins breaks it all down:
For 80-year-old Las Vegas resident Lola Pablo, every dollar matters.
“Anything helps,” Pablo said.
She receives about $2,340 a month in Social Security, which she says is her primary source of income.
“That’s the only income I’m getting other than my part-time job,” she explained.
While she’s grateful for the increase, Pablo says she still works part-time to make ends meet.
To find out whether the increase is truly keeping pace with inflation, we spoke with Brad Zucker, a local financial advisor.
“Right now, we’re looking at year-over-year inflation of about 2.7%, and Social Security COLA is at 2.8% so yes, it’s keeping up with inflation numbers,” Zucker said.
However, Zucker stresses that Social Security was never designed to cover all retirement expenses.
“It was meant to replace about 40% of your pre-retirement income,” he said.
For seniors feeling stretched, Zucker recommends starting with the basics, making sure your earnings history is accurate.
“You only have a certain number of years to go back,” he said. “If your income wasn’t credited correctly and it's beyond the limit of years, there’s nothing you can do about it, so you need to verify your income.”
Timing also plays a big role. Claiming benefits as early as age 62 can permanently reduce monthly checks, while waiting until full retirement age can significantly increase them.
Another major expense to watch closely is healthcare.
Zucker says medical costs and Medicare plans can quickly eat into Social Security benefits. Reviewing your Medicare coverage each year and shopping for better options could save hundreds of dollars annually.
For Pablo, she says she’s thankful to live in a place where she can still manage.
“Living here in Nevada meets my needs,” she said. “I couldn’t afford to live anywhere else.”
If there's an issue impacting your wallet that you want Shakeria to look into, send her an email at Shakeria.Hawkins@KTNV.com, or click the banner below:
