5 Ways to Stretch the Social Security COLA

2. Get rewarded for everyday spending

You can reduce the net cost of your groceries and other expenses even more by using a cash-back card to pay for your purchases. “As long as you pay off your balance in full every month, so you avoid interest charges, it’s free money,” Rossman says.

Many cash-back cards focus on set spending categories, such as travel or entertainment. Rossman says the simplest strategy is to sign up for one that gives you a flat 2 percent back for every dollar you charge, such as the Citi Double Cash card or the Wells Fargo Active Cash card. “It’s less work than juggling multiple cards with higher rewards in specific categories but lower rewards on others,” he says.

To earn more, Rossman suggests layering in one additional card that offers a higher reward on something you buy regularly, like groceries or gas, and use it exclusively for those bills while paying for everything else with the 2 percent card. For instance, he says, American Express’ Blue Cash Preferred Card gives you 6 percent back at supermarkets on up to $6,000 of purchases a year (but has a $95 annual fee after the first year).

Another option — one that avoids the risk of running up big credit card balances — is to use a cash-back debit card instead. Bodge recommends the PayPal Debit Card, which offers 5 percent back on up to $1,000 in spending on a category of your choice each month, and the Target Circle debit card, which gets you 5 percent off Target purchases.

3. Do the (side) hustle

About 22 percent of boomers are earning extra money through a side gig (or gigs), bringing in an average of $918 a month, according to a June 2025 Bankrate survey.

“The great thing about side hustles is that they’re age-agnostic,” says Kathy Kristof, founder of SideHusl.com, which researches and reviews companies offering freelance, flexible and remote work. “Potential employers don’t care how old you are; they just care whether you can do the job and get results.”

Ferragut, for example, rents out a room in her house through a company that helps place traveling nurses and other professionals in short-term lodging. She expects to increase her income by about 33 percent. “It's going to help tremendously,” she says.

Another approach is to leverage the skills you developed in your career by working as a consultant. Consulting and staffing firms such as GLG, Maven and Robert Half International can help you identify opportunities that fit your talents and experience, Kristof says.

You could also seek side gigs related to a hobby or passion. Animal lovers might advertise dog-walking and pet-sitting services to neighbors on NextDoor or through a national pet-care directory site like Rover, Kristof says. Love movies? Rent out your house to a production company via a site like Giggster.

Or look into getting paid for giving your opinion. FindFocusGroups is an online directory of market research opportunities paying $50 or more an hour, according to SideHusl. If you have a chronic condition or are a caregiver for someone who does, Kristof recommends Rare Patient Voice, which pays an average of $120 an hour for feedback on medical products and services.

4. Refinance high-interest debt

A spike in credit card debt is adding to the financial squeeze for many retirees who have turned to charging in recent years to cope with high prices. According to a November 2024 study from the Employee Benefit Research Institute, 68 percent of retirees report carrying a balance on credit cards, compared with 40 percent in 2022.

If you’re among them, refinancing that debt via a 0 percent balance-transfer card can lower your monthly payments and save you a bundle in interest. To qualify, you generally need a credit score above 670 — typically a manageable bar for boomers, who had an average FICO score of 746 in 2024, according to Experian. Just remember that the 0 percent interest rate is introductory (typically lasting between six and 21 months); if you carry a balance beyond that, the interest can quickly pile up again.

Other options for refinancing high-rate credit card debt include paying off your balance with a home equity line of credit. (Interest rates ranged from around 5 percent to 12 percent in October, according to Bankrate, compared with around 20 percent for the average credit card.)

Refinancing works in the long run, though, only if you don’t run up your cards all over again. “It’s important to figure out why you got into debt and come up with a payment plan you can stick to,” says Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida. “Otherwise, you’re just compounding the problem.”

5. Negotiate better deals

Inflation has also spilled into insurance rates. The national average cost of full-coverage car insurance is expected to tick up 4 percent by the end of 2025 and could rise by 7 percent if prolonged tariffs lead to higher losses for insurers, an Insurify study found. The cost of homeowner’s coverage has been soaring as well.

Yet nearly 60 percent of boomers fail to look for lower rates when their auto policies come up for renewal, and more than half don’t get competing quotes for homeowners insurance, according to recent LendingTree data. Surveys by the company show that most people who comparison-shop end up saving money. You might also save by getting home and car coverage from the same insurer; many companies give discounts to customers who "bundle."

To further reduce the cost of auto coverage, McClanahan recommends checking that your policy accurately reflects your driving habits — many people drive less when they stop working, and that can reduce your rates. You can also lower premiums, typically by 5 to 10 percent, by taking an online defensive driving course such as AARP’s SmartDriver or AAA’s RoadWise.

On the home front, take advantage of discounts insurers offer for protecting your house against natural disasters, fire and theft. Steps such as adding storm shutters, reinforcing your roof, putting in more smoke detectors or installing a home security system can reduce your rates by as much as 20 percent, according to the Insurance Information Institute.

Some insurers also offer discounts of up to 10 percent if you’re retired and 55 or older, because people who spend more time at home are less likely to be burglarized and more likely to spot fires before serious damage occurs.

Another way to save: Review your subscriptions and streaming services to make sure you’re getting their best deal. Rossman recommends checking providers’ latest promotions, then calling their customer service line and asking to match that rate.

“You don’t get what you don’t ask for, and all of these price breaks can really add up,” he says.