By OBBM Network Editorial Staff

Derived from an episode of Epic Real Estate.

Imagine checking your bank account in January and seeing a modest bump from a 3.6% Social Security cost‑of‑living adjustment, only to watch that gain disappear within weeks as bills climb faster than inflation. That’s the reality for many retirees whose birthday determines whether they get the full raise, a partial boost, or nothing at all.

Three Birth‑Year Groups, Three Outcomes

The Social Security Administration announced on October 14 that the annual COLA will be 3.6%, the first increase since 2022. But the raise is not applied uniformly. Matt Theriault explains that the system now sorts beneficiaries into three groups based on birth year:

• Group 1: born 1961 or earlier – receives the full 3.6% increase, roughly $75 a month, but Medicare Part B premiums are deducted first, reducing the net gain to about $68.
• Group 2: born 1962‑1964 – the raise is added to future checks even if they haven’t filed yet, meaning delaying filing can cost them the boost.
• Group 3: born 1965‑1966 – sees no increase until they turn 62; disability or survivor beneficiaries still get the full raise.

Theriault notes, “If you’re in Group 1 and collecting, your check goes up 3.6% in January. For the average retired worker, that’s about $75 a month, from $2,095 to $2,170. But odds are you’re on Medicare, and the Medicare Part B premium comes out of that check before you ever see it.”

Five Household Bills That Can Eat the Entire Raise

Even a modest $75 boost can be nullified by rising expenses. Theriault highlights five categories that have outpaced the COLA:

1. Electricity and natural gas: rates jumped 4.4% and 5% respectively over the past year, outpacing the 3.6% Social Security increase.
2. Water, sewer, and trash: costs have surged 207% since 2000, more than double the overall inflation rate of 93%.
3. Homeowner’s insurance: premiums rose 64% from 2021 to the end of 2025, with additional 8% hikes expected in Illinois.
4. Recurring subscriptions: streaming, phone, and app services often increase by $2‑$3 a month, unnoticed on lengthy statements.
5. Property taxes: average single‑family tax bills grew 3% even as home values fell 1.7% nationally; in places like Houston the increase hit 10% and Memphis 34%.

Theriault warns, “The raise only exists because prices already went up and your check is struggling to keep up despite your raise.”

Actionable Steps to Protect Your Income

Each of these expense categories can be tackled with low‑cost tactics. For utilities, compare the kilowatt‑hour rate on your latest bill to the previous year’s and call the provider to ask about cheaper plans—many utilities offer multiple tariffs that aren’t advertised. To detect hidden water leaks, place a drop of food coloring in the toilet tank; if the color appears in the bowl after ten minutes, you likely have a running leak that can waste over 200 gallons daily.

When it comes to homeowner’s insurance, don’t auto‑pay the renewal. Review the dwelling coverage and deductible, then obtain at least two competing quotes before the policy expires. Theriault suggests using a service like CrushMyPremium.com to force insurers to bid for your business.

For subscription creep, pull the last three months of credit‑card statements, highlight any recurring charge, and then compare the same month from the previous year. Any line that increased by more than $3 should be flagged as a potential COLA‑eater.

Using Technology for Full‑Picture Money Management

Theriault recommends Monarch, a financial‑aggregation platform that consolidates bank accounts, credit cards, loans, and investments onto a single dashboard. The tool automatically flags recurring bills, highlights unusual spending, and even suggests areas to cut. He shares his own result: “the feature alone helped me identify $437 a month of subscriptions I’m no longer using.” Monarch also offers a free trial with a 50% discount on the first year for listeners via the link monarch.com/ERE.

By centralizing data, households can quickly see whether a $75 Social Security bump is truly increasing disposable income or being swallowed by hidden costs.

Why Understanding the New Rules Matters

The shift to birth‑year based COLA calculations adds a layer of complexity that many retirees won’t notice until their next check arrives. Coupled with rising Medicare premiums and accelerating household expenses, the net effect could be a negligible or even negative change in real purchasing power.

Staying informed—and taking proactive steps to manage bills—ensures that the hard‑earned Social Security benefit continues to serve its purpose: providing a stable safety net for seniors across the nation.

The full episode of Epic Real Estate is available on OBBM Network TV.