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Surviving Without a Social Security COLA

Spending less and earning more on investments can fill the void.

Retirees who rely on their monthly Social Security checks to make ends meet are coping with some bad news: There won't be a cost-of-living adjustment (COLA) in 2011. I was amused and bemused by the news reports that say it will be only the second year without an increase since automatic adjustments for inflation were adopted in 1975. When was the first year? 2010.

Faced with no increase in Social Security for two years in a row, retirees whose living costs — especially for health care — are increasing will have to close the gap somehow. The clearest options are by fattening up their income, putting their spending on a diet, or a combination of the two. While it's a bitter pill to swallow, there are ways to accomplish both.

Increase Your IncomeBack to Article

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