Finance
4 Financial Corners You Shouldn’t Cut While on Social Security
Social Security isn’t designed to be the only or even biggest source of retirement income, though a lot of seniors depend heavily on it to pay the bills. That’s not easy, considering that the average retirement check was only $1,869.77 a month as of June 2024, according to the Social Security Administration. Even the maximum monthly benefit in 2024 — $4,555 for those who have reached age 70 — is barely enough to pay the bills in many cities.
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It’s tempting to cut financial corners when you are on Social Security, and in some cases it might make sense. There are certain expenses you can eliminate in retirement, ranging from a second car to eating lunches out. These might have been necessary when you were working, but not in retirement.
There are some financial corners you shouldn’t cut, however — even when a large source of your income is from Social Security. Here’s a look at four of them.
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1. Healthcare
Nothing can ruin a retirement more than health problems, which is why you shouldn’t cut corners on your health. Allow enough money in your budget for regular health checkups and doctor visits.
Signing up for Medicare when you turn 65 is another important step. If your budget allows — and you don’t have other options — sign up for Medicare Part B. It covers healthcare services that aren’t typically covered under Medicare Part A, such as doctor visits, outpatient care, home health care and medical equipment. In 2024, the monthly premium for Medicare Part B is $174.70. The yearly deductible is $240.
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2. Wellness
In keeping with the health theme, you also shouldn’t cut corners on all the things that contribute to a healthy lifestyle. Don’t load up on junk or processed food just to save money.
Instead, make room in the budget for whole grains and fresh fruits and vegetables. Similarly, invest in items that help you maintain a healthy lifestyle, whether it’s a yoga mat, bicycle, exercise equipment or weights. You can score great deals by shopping around for used items or taking advantage of senior discounts.
3. Housing
It might be tempting to buy a cheap house out in the middle of nowhere, or rent a cheap apartment in an area not suited for seniors. But you’ll likely end up regretting it. When you are retired and living on Social Security, you want to be near amenities that are important to seniors, such as access to healthcare, transportation, pharmacies and grocery stores. You don’t want to live in an area where you might be a target for criminals. Consider moving near friends and family to ensure you have plenty of social outlets.
Along the same lines, you don’t want to cut corners on maintaining a safe and well-functioning home. Make sure your appliances and electrical systems are up to date and don’t pose a safety hazard. In addition, keep your security systems updated and in good working condition.
4. Quality of Life
Retirement is supposed to be your reward for decades of working, raising a family and making financial sacrifices. It’s important to spend your golden years doing things you might enjoy, such as traveling, pursuing a favorite hobby, attending cultural events or exploring the outdoors.
Rather than cut corners on pastimes that keep you engaged and active, look for ways to save money while still enjoying the full experience. This might mean taking day trips instead of overnight vacations, or signing up for senior discounts to concerts and art museums.
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This article originally appeared on GOBankingRates.com: 4 Financial Corners You Shouldn’t Cut While on Social Security