In January 2023, the federal government increased Social Security benefits and SSI payments increased for 70 million Americans to try to ensure that the purchasing power of these benefits is not eroded by inflation. Social Security benefit increased by more than $140 a month, on average.
"The increase in these payments was a part of the cost-of-living adjustment (COLA)," explains Erica Wright, financial advisor at Northwestern Mutual in Milwaukee, Wisconsin. Despite COLA, she adds, many retirees still struggle to live on a fixed income amid accelerating inflation.
The good news is that there are strategies that retirees on fixed incomes can use to make their money go farther. Some tips may seem obvious, but retirees often overlook them. Discipline and dedication are needed to succeed.