Expenses increase more than Social Security does

#Middlebury #Seniors

The start of the New Year means having to face just what our 2.8-percent Social Security increase really means. I had done the math: my 2018 Social Security plus the welcome 2.8-percent increase equals the benefit amount for 2019. There would be more money to spend, I assumed.

Here is where it actually stands:

• Groceries – Last January, I saved all my grocery receipts for the month so I would have a list of what everything cost. It’s only been a year, but everything has gone up. Not one single item has gone down in price.
• Housing – Two months ago, the notice arrived about rents going up $20 on Jan. 1.
• TV/Internet – The monthly cost of cable TV and Internet service rose over $30. I called and threatened to cut the cord, and they suddenly found a deal that brought the increase down $20.
• Electric – The power company just announced a 13-percent increase in kilowatt-hour costs.
• Miscellaneous – On the occasional expense end of things, my favorite shirt, which I wear out and then replace every year, went up $10. Oil changes are up $15.

The sum of all this means that I’m actually worse off than I was last year. Many of us are in this same situation. Over 20 percent of married couples and over 40 percent of singles have Social Security for 90 percent of their income. We not only aren’t adding to emergency savings, we’re barely hanging on.

I’ll include as many cost-saving tips in this column as I can this year. But if you haven’t retired yet, spend 2019 practicing living on only the amount you’ll get from Social Security. Use every extra dollar to pare down debt or add to your savings.

(c) 2018 King Features Synd., Inc.