COUNCIL BLUFFS, Iowa (KMTV) — Sixty-six million Americans get a social security benefit each month.
But right now, how are local seniors managing an increase happening with all their costs?
David Stevens retired 14 months ago, waiting until he was 65 to draw on his social security. He took half of his pension, rolled it into his 401k and invested it in a portfolio.
But over the last year, it's been down 18%. The stocks and bonds have been doing poorly and retirement isn't exactly what he envisioned.
"We haven't been doing the traveling that we hoped for," he said. "We're holding off on that at this time. Home improvements and things like that we wanted to do, we've put off."
Stevens worked for years at the Harrison County Rural Electric Cooperative.
"On a month-by-month basis, we just make it. We just cover the bills," Stevens said.
Making their hard-earned money last is a common concern among seniors.
TS Bank Officer Jay Myers says for those who are recently retired, an economy like this is "brand new" to them.
"Now this current inflationary environment is kind of a new shock that we haven't seen for 40 years to this extreme," Myers said.
Everyone has different needs, incomes and expenses, but here are some ways you can better manage your money.
1. Set up a hard budget and stick to it.
2. Have an emergency "rainy day" fund for your short-term needs.
3. Meet with a financial provider each year or whenever you need it.
"Most are on a truly fixed income," Myers said. "That inflow of funds, they have to be very cognizant of what's going out so to speak."
Doing the best you can and doing without is a "new reality" for Stevens.
"It's just hard, it really is. And I don't have any magic answers for those things," Stevens said.
This year's cost of living adjustment is expected to be the biggest since 1981, a year the country was also experiencing high inflation.
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