Social Security 2025: 8 Ways To Plan for Your Grocery Budget Next Year With Rising Costs
Hoping for a bit more stretch in your Social Security check for 2025? The good news is that the annual cost-of-living adjustment (COLA), which helps Social Security recipients keep up with rising costs, is forecast at 2.63% for 2025. The bad news is that COLAs often lag behind real inflation. In fact, inflation has outpaced COLAs eight times since 2010, and you might need to find ways to stretch your checks.
Check Out: What a Middle-Class Social Security Check Could Look Like in 2025
Discover More: 7 Reasons Future Retirees Should Consider a Financial Advisor
With that in mind, if you’re retired and receiving Social Security, here are eight ways to keep your grocery budget on track in 2025.
Assess Your Income and Allocate a Budget
List all sources of income, including Social Security, pensions and any additional earnings. A good starting point for setting your grocery budget is 10% of your income, which you can adjust based on your family size and your location’s cost of living.
You can also use tools like the USDA’s Cost of Food reports, which provide estimates for monthly grocery costs based on various spending levels. Recent research from TheSeniorList found that groceries were the biggest expenses in retirees’ budgets after housing costs and car payments, with more than 15% of retirees finding grocery and food costs to be their most unexpected retirement expense.
Plan Your Meals and Shopping List
“Becoming a savvy shopper starts before you even step foot into the grocery store,” said Meghan Sedivy, Fresh Thyme Market’s official RD and LDN. She recommends organizing your fridge, freezer and pantry to take inventory of what you already have.
“Once you know what you have on hand,” she said, “take a look at your week. You will want to plan meals and snacks around your activities, think about your meal prep time and availability and then create a menu for the week.”
Look For Deals Before You Shop
Search for deals online, through grocery store apps and weekly sale flyers before heading to the store.
“While you may be able to walk through the grocery aisles and look for in-store promotions, you may find others by looking online or in the grocer’s app,” said Brett Narlinger, Senior Vice President of Global Commerce at Blackhawk Network.
Use Coupons and Loyalty Points
Narlinger also recommends taking advantage of loyalty programs for additional savings and using points to pay for more groceries.
“Being smart with points can create ongoing savings opportunities that are often better than one-time discounts,” he said. “For example, when you’re an active member of a loyalty program, the merchant can personalize offers for you depending on your spending behavior, brand and category preferences. This can significantly help you save on the products you buy most frequently.”
Buy In Bulk and Choose Generic Brands
Stock up on non-perishable items by buying in bulk as this can significantly lower your grocery bill over time. Think rice, pasta, canned goods and other staples that you can store and use as needed. When it comes to brand choices, opt for store brands over name brands.
“Look for private label or the grocery store’s personal brand, as these items are typically more cost-effective but still contain great quality ingredients with great flavor,” said Sedivy.
Shop Smart At the Store
Sedivy suggests opting for seasonal fruits and vegetables, which are often cheaper and more nutritious, and considering frozen meat and seafood, which can be more cost-effective and have a longer shelf life than fresh.
Erika Kullberg, attorney, personal finance expert and founder of Erika.com, points out that frozen food often contains more nutrients than “fresh” fruits and vegetables. “Frozen produce is also generally more affordable,” she said, “so when it goes on sale, load up your freezer to get even more bang for your buck.”
Another common misconception is that pre-made packaged food is cheaper than food you can cook. “While pre-made food is convenient,” said Kullberg, “baking your own cookies or making your own bread can cost you a lot less.”
Make Strategic Gift Card Purchases
Buy gift cards during promotions to earn extra points and rewards which can be used for future grocery and other purchases.
“Many major grocery chains offer rewards you can use to buy groceries in addition to gas discounts when you make certain purchases from their stores as part of promotions–particularly those involving gift cards,” said Narlinger. “Some stores offer double, triple, and even quadruple points during gift card promotions. You can cut down the price of filling up your tank while also using those gift cards and rewards for future grocery purchases.”
Track Your Grocery Spending
Keeping a record of the money you’re actually spending on groceries will help you stay within your budget. It can also help you spot trends and potential overspending. Use receipts or a budgeting app, and as prices rise or your finances shift, adjust your spending to stay on track and keep your grocery budget in check.
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This article originally appeared on GOBankingRates.com: Social Security 2025: 8 Ways To Plan for Your Grocery Budget Next Year With Rising Costs
