5 Ways to Stretch the Social Security COLA

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. “On a blended basis, the 2 percent rate is hard to beat.”

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).

Don’t want to risk running up a big credit card balance? You can opt for a cash-back debit card instead, Bodge says. She recommends the PayPal Debit Card, which gives you 5 percent back on up to $1,000 in spending on a category of your choice every month, and the Target Circle debit card, which discounts all Target purchases by 5 percent.

3. Do the (side) hustle

About one in four boomers is earning extra money through a side gig (or gigs), bringing in an average of $561 a month, according to a June 2024 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.”

One 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. Own a home and love the movies? You might be able to 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

Adding to the financial squeeze some older Americans are feeling: a spike in credit-card debt as many retirees turned to charging over the past couple of 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 to 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 745 in 2023, according to Experian. But don't forget that the 0 percent interesting is an introductory rate (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 ranging from around 8 percent to 10.3 percent in early December, according to Bankrate, compared to around 20.4 percent for the average credit card). If you have solid credit, a personal loan might also be more manageable, with current rates running from 10.7 percent to 12.5 percent for borrowers with credit scores of 720 or higher.

Refinancing only works in the long run, though, 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

Despite the general cooling of inflation, auto insurance premiums have continued to defy gravity, spiking by more than 50 percent since 2021, according to federal data. The cost of homeowner’s coverage has been soaring as well.

Yet nearly 70 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 2024 data from online financial-services marketplace LendingTree — even though the company’s surveys 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 says, make sure your policy accurately reflects how much you drive — many people drive less when they stop working, and that can reduce your rates. You can also lower premiums, typically by 5 percent to 10 percent, by taking an online defensive driving course such as AARP’s SmartDriver or AAA’s RoadWise. (Some state motor vehicle offices and local driving schools offer classes as well.)

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.