Social Security benefits are increasing. Here's how else seniors can boost their money.
Social Security beneficiaries woke up to some welcome news on Wednesday: Their benefits will be increasing in January thanks to a new 3.2% cost-of-living adjustment. The average retirement benefit will jump up by around $50, the Social Security Administration said. While any extra money is helpful, this year's COLA adjustment pales in comparison to the 8.7% boost beneficiaries received for 2023. As such, the current bump will have a negligible effect on stubborn inflation.
Fortunately, the repercussions of inflation have not been all negative. While borrowing costs are currently elevated, the returns savers can get on their money now are the highest they've been in years, thus providing alternative ways for seniors and all savers to boost their money now.
Start by exploring your CD account options here to see how much more you could be earning.
How seniors can boost their money now
Here are three effective ways seniors can boost their money today.
Open a CD
A CD, also known as a certificate of deposit, is a great way to grow your money in any economy but particularly now. CD interest rates are upward of 5.5% currently, especially if you open an account with an online lender. You could potentially even qualify for a CD with a 7% APY. That's a significant amount of money that can be earned, simply by depositing some of your funds into one of these accounts. Just be comfortable with the amount you deposit, or you can wind up forfeiting some or all of the interest you earned when you're penalized for withdrawing your funds early.
Get started with a top interest-earning CD here now!
Open a high-yield savings account
High-yield savings accounts are also currently available at high interest rates, and savers can earn and use the interest they earn immediately, as these accounts aren't locked into specific terms like CDs are. That said, the interest rates on high-yield savings accounts are variable, so it makes sense to open one now while rates are high and the interest-earning potential is significant.
If interest rates stabilize or fall in 2024, as some are forecasting, the interest you can earn with a high-yield savings account will follow suit. But with rates close to 6% now, it's an easy way to grow your bottom line without losing any accessibility to your funds.
Get started with a high-yield savings account here.
Review your budget
When was the last time you sat down and closely reviewed your budget? If it's been a while, it may be worth taking the time to find ways to cut costs. Look at your investments and what your monthly bills are. Maybe there are ways you can pay cash instead of using credit (and getting saddled with today's high credit card rates).
You also may be paying too much out of pocket for healthcare costs left over by Medicare (in which case a Medicare supplemental insurance plan can help) or for in-home care (in which long-term care insurance may help save money over time). Take the time and crunch the numbers and see what can be rearranged. You may be surprised at how much money you could save.
The bottom line
A Social Security cost-of-living adjustment is always helpful, even if it's not as high as many beneficiaries would have preferred. That said, there are still ways seniors can improve their finances today. This includes opening a CD, a high-yield savings account or both. But it can also be as simple as reviewing your monthly budget for openings to save money and shore up insurance protections.
Learn more about your high-yield savings account options here today.
