Social Security 2024: 6 Savings Tips Americans Are Not Taking Advantage Of
If you depend on Social Security for all or most of your retirement income, you’re not in a good position — but you’re hardly the only one.
“According to the U.S. Census Bureau, poverty among seniors increased to 15.2% of the 65+ population in 2023,” said Chris Orestis, CSA, senior issues advocate, author and president of The Retirement Genius. “Today it is estimated that over 17 million seniors are living below the poverty level and struggling with economic and food insecurity.”
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Most of that can be traced to insufficient savings and over-reliance on the safety net.
“Social Security has become the primary source of retirement income for the majority of elderly Americans, providing over $1 trillion in benefits to 70 million people in 2023. Social Security provides about 90% of income for about a quarter of all seniors in the U.S.,” Orestis added.
If you’re among the millions who depend on Social Security, it’s crucial to capture every dollar of available savings to stretch your income and improve your lifestyle. Here’s how.
Downsize Your Living Space
If your house or apartment is bigger than you need, move, if possible, into something with less square footage and lower monthly payments.
“Smaller homes mean reduced expenses across the board — lower rent or mortgage, less in property taxes, and decreased utility bills,” said Veronica Fernandez, founder and CEO of Secure Senior Benefits. “It’s a practical step toward long-term financial health.”
Research Local Property Tax and Renter Rebates
In New Jersey, the Senior Freeze and Stay NJ programs offer rebates and reductions that can slash property taxes by up to $6,500 for eligible residents aged 65 and up. In Illinois, the Low-income Senior Citizens Assessment Freeze Homestead Exemption (SCAFHE), Senior Citizens Homestead Exemption and Senior Citizens Real Estate Tax Deferral Program can slash property taxes by thousands.
Those are just two examples. According to the Institute on Taxation and Economic Policy, dozens of states offer so-called “circuit-breakers” and other age-specific property tax reductions to make housing more affordable for seniors — including renters, in many cases.
“These hidden gems can significantly lighten your tax burden,” said Fernandez.
See Also: How Much the Average Person 65 and Older Spends Monthly
Take Medicare Off Autopilot
Everyone eligible for Medicare should enroll, but even though it’s a government-administered program, it is not one-size-fits-all — and what worked last year might cost more than it needs to this year.
“Make annual Medicare reviews a ritual,” said Fernandez. “Switching plans can lead to superior coverage at more affordable rates while cutting back on out-of-pocket expenses.”
Never Turn Down a Senior Discount
One of the benefits of getting older is that prices drop on all kinds of things you eat, drink and do.
“Check into discounts for seniors and make sure those are your go-to places to shop,” said Dr. Heidi MacVittie, a financial expert with a master’s in finance and founder and CEO of Moola Masters.
The AARP, the Senior List and SeniorLiving maintain comprehensive lists of available discounts, so check them out.
Take Advantage of Available Programs
If you’re struggling financially in retirement, there are programs that can supplement your income and give you the resources you need to get by — particularly if you’re struggling to buy enough to eat.
“Food insecurity is particularly hard on senior citizens because many are living on tight budgets and a fixed income from Social Security, maybe a pension and hopefully some savings,” said Orestis. “The impact of isolation during COVID and ongoing inflation has made it even tougher over the last couple of years on a very vulnerable population. Adding to the danger for seniors is that many are forced to make hard choices between food and medications and sometimes cut back on one or the other — or both.”
He recommended the following programs that allow seniors to save money on food.
Meals on Wheels
Every dollar you don’t spend on food is one you can save or spend elsewhere — and Meals on Wheels can help.
“This federally supported nonprofit serves 251 million meals to approximately 2.2 million seniors every year either by delivering to people’s homes or in a congregate setting such as churches or community centers,” said Orestis.
SNAP
The program formerly known as Food Stamps is America’s largest anti-hunger initiative.
“The Supplemental Nutrition Assistance Program (SNAP) is a government-subsidized benefits program to help low-income households purchase healthy food,” said Orestis. “Seniors will qualify starting at age 60.”
It’s an underutilized program, to say the least.
“The National Council on Aging estimates only 48% of adults aged 60+ who are eligible have actually enrolled in SNAP to receive financial support for food purchases with a SNAP card,” said Orestis.
To save even more money, don’t limit yourself only to federally supported programs.
“Never overlook community resources,” said Fernandez. “Programs offering assistance with utilities and healthcare can be lifelines for financial stability.”
Save Money by Getting the Most out of Social Security
The best way to save money, increase your income and make sure you get every dollar you’re owed from Social Security is to understand the program and how to get the most out of it.
Know How Your Age Impacts Your Benefits
Most people’s full retirement age is 67, but you can claim your benefits earlier or later — and your decision could mean a difference of thousands per month.
“People qualify for Social Security at age 62, but the longer they wait to start collecting up to the age of 70, the more they will get,” said Orestis. “For 2024, the monthly benefit level for a person starting to collect at age 62 is $2,710 but $4,873 if starting at age 70.”
Do Your Research If You Got Divorced or Lost a Spouse
According to Orestis, the spouse of a deceased or divorced partner can collect a higher amount based on their ex’s benefits if they are higher than their own.
“If a person is going to re-marry, they can still collect based on their ex-spouse — but only if they remarry after reaching the age of 60. In the case of divorce, an ex-spouse can collect up to 50% of the other’s benefit if they are 62 or older, were married at least 10 years and are single.”
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This article originally appeared on GOBankingRates.com: Social Security 2024: 6 Savings Tips Americans Are Not Taking Advantage Of
