The article advises retirees to think carefully before spending a Social Security cost-of-living adjustment (COLA), since the increase is meant to offset inflation rather than add purchasing power. For example, a 3% increase on a $2,000 monthly benefit adds $60, but higher living costs could absorb it. Medicare Part B premiums are often deducted directly from benefits, so a $15 rise in the premium would cut a $60 increase to about $45. The author suggests building an emergency fund or paying down high-interest credit card debt, such as a $3,000 balance at 24% APR, which can generate about $60 in interest in the first month.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Your Social Security Increased Should You Increase Your Monthly Spending Too ?
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