5 Financial Moves to Cover What Social Security Doesn't

Key Points

• Relying on personal savings is your best option if you have the cash.

• Consider cutting back on discretionary purchases or seeking a part-time job.

• You will get a cost-of-living adjustment that will increase your Social Security benefits for 2026.

• The $23,760 Social Security bonus most retirees completely overlook ›

Retirement is supposed to be a fun, relaxing time to spend on your hobbies and with family after a long career. At least that's what we're told. But whether you actually experience it that way depends on a few factors, including your Social Security benefits.

It would be great if your checks covered all your expenses, but that's not realistic for most people. So you'll have to resort to other tactics when your checks aren't enough. Here are five that are worth trying.

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1. Rely more upon personal savings

If you have a lot of money saved in a 401(k) or IRA, this is your best bet for covering what Social Security doesn't. The money is already yours, so you can use it when and how you like. This way, you won't have to adjust your spending habits if you don't want to.

Just keep in mind that your personal savings may have to last for decades, and the future of Social Security is still a bit uncertain. You may want to combine this strategy with some of the others listed here.

2. Cut back on discretionary spending

Discretionary spending is spending on things that aren't required for daily living, like dining out or travel. Things like streaming services fall under this category as well. While some discretionary purchases are good for helping us de-stress and enjoy our free time, too much discretionary spending can leave you without enough money to pay for the essentials.

This is the most common strategy retirees use to cover what Social Security doesn't, with more than half of those recently surveyed by Nationwide reportedly making discretionary spending cuts as living costs continue to rise. Single adults were more likely to report cutting back on discretionary spending.

3. Seek part-time work or other income

A retirement job may not have been part of your long-term plan, but it can go a long way toward easing your financial stress. It will give you a steady paycheck that can supplement your benefits, and it may give you a sense of purpose and a chance to socialize.

If you're under your full retirement age (FRA), though, you should know that earning too much at a job could temporarily reduce your Social Security benefits. However, your checks would get a permanent boost when you reach your FRA.

4. Downsize your living situation

Downsizing your living situation could help you save money on your rent or mortgage payment, your insurance, and possibly even things like groceries and healthcare if you move to an area with a lower cost of living. This could help you improve your quality of life without taking on extra work.

However, make sure that a move will actually save you money before going through with it. This might not be the case if housing costs have risen significantly in the area since you bought your current home.

5. Reduce spending on essential items

Nearly one-third of retirees whom Nationwide surveyed said they made ends meet by reducing spending on essentials. There are some ways to do this without affecting your quality of life too much, like using coupons and buying store-brand items instead of name brands.

But avoid skimping on things like medical care. This could cause you to miss serious issues that could lead to even more costly medical bills down the road.

Looking ahead to 2026

Social Security checks will get a boost next year, thanks to the annual cost-of-living adjustment (COLA). We won't know the official COLA until Oct. 15, but projections put it at 2.7%. This would add about $54 per month to the average retirement check and $26 to the average spousal benefit.

Once we know exactly what the COLA is, it will be time to start putting together your budget for next year. Think about which of the above strategies appeal most to you. Try them for a few months and then revisit your budget to see what's working and what isn't.

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