This coming year, if you are a Social Security recipient you can expect to receive an annual cost-of-living adjustment (COLA) of 8.7%. This increase will boost the retiree’s monthly payment by $146 in 2023, the biggest adjustment seen since the ’80s. This increase aims to help Social Security recipients combat the high inflation that has been plaguing the US since last year.
While it is still too early to tell if this adjustment will be enough to keep up with inflation, it is certainly a good starting point.
In addition to this increase in cost-of-living payments, the Centers for Medicare and Medicaid Services announced last month that Medicare recipients will also benefit by seeing their Medicare Part B premiums decrease by 2023. This is the first time in over a decade that a decrease like this has happened.
While the annual increase is good news, the benefits have not kept up with the rising cost of living over the years. In March, for instance, a study released by The Senior Citizens League said that Social Security payments lost 40% of their buying power since 2000. Many Social Security recipients could not afford food, housing, and other necessities.
The downside of such a large increase as this comes at a cost, one that might mean some people are pushed over the threshold to receive other benefits such as Medicare Extra Help, Medicaid, food stamps, and rental assistance. Some Social Security beneficiaries may also need to start paying taxes or owe higher levies on their Social security benefits if their income is over a certain amount.
The end of the year quickly approaches if you’re like many Americans in need of a Medicare plan, now is the perfect time to connect with one of Medicare Info’s licensed insurance agents.
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