After months of speculation about a 2025 Social Security cost-of-living adjustment (COLA), seniors finally have their answer. Benefits will be rising by 2.5% in the new year.

That’s not the smallest Social Security raise in history — not even close. On more than one occasion, seniors have gotten stuck with a 0% COLA. But compared to the COLAs that have arrived in recent years, a 2.5% raise might seem like a giant disappointment.

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Worse yet, if you’ve been struggling to pay your expenses based on your current monthly benefits, a 2.5% increase may not put you in a much better position come January. But if that’s the case, it may be time to make some key changes. Here are some adjustments to make so that 2025’s Social Security COLA doesn’t completely wreck your finances or make an already tough situation equally hard.

1. Go back to work

If you aren’t covering your living expenses with your Social Security benefits and you don’t have much savings to fall back on, it may be time to go back to work. This doesn’t mean you should end your retirement and go back to a full-time schedule. But a part-time job may be in order to give your income a boost.

If you’re worried that doing so will take away from your Social Security checks, here’s the deal. If you’ve already reached full retirement age, income from a job won’t impact your benefits in a negative way. If you haven’t reached full retirement age, though, you’ll be subject to Social Security’s earnings-test limit.

In 2025, you can earn up to $23,400 without risking benefits being withheld. From there, you’ll have $1 in Social Security withheld per $2 of earnings.

However, if you’re reaching full retirement age in 2025, you’ll get a higher earnings-test limit of $62,160. Earnings beyond that point will mean having $1 in Social Security withheld per $3 of income.

2. Relocate

Whether it takes the form of downsizing or relocating, there may be a living situation that costs a lot less than the one you’re in now. See what housing prices are in your area if you have a reason to stay, like having friends or family in town. If downsizing lowers your housing costs by 10% or 15% a month, it’s worth making a move.

You could also look at relocating to a less expensive area if you don’t have strong ties to your current city. Just make sure to look at the big picture before relocating. Some areas that are cheaper may not have the best access to Medicare plans or healthcare services, in general, as one example.

3. Turn to family for help

There’s no shame in admitting that you’re struggling to get by on Social Security. If working and moving aren’t options, see if a family member can assist you to some degree. That doesn’t have to mean taking money, though.

If you have a grown child with extra space in their home, see if moving in for a year or two is doable. You might be able to save quite a bit of money and build yourself a cushion if you can live rent-free for a bit.

Similarly, if you’ve been paying people to maintain your home because it’s become a struggle to do it yourself, ask your nephew a few towns over to come by once a month and help. Chances are, you’ve supported your loved ones in some shape or form. Don’t be embarrassed if it’s your turn to be on the receiving end of support.

Though a 2025 Social Security COLA isn’t a worst-case scenario, many seniors were hoping for a higher raise. With the right strategy, you can find a way to make that 2.5% increase work for you.

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