Great News for Social Security Beneficiaries
For those retirees who are currently receiving Social Security payments, and also those of you preparing to claim your benefits, we have some great news. In 2023, you will receive a cost of living adjustment (COLA) that will increase the amount of your monthly checks.
And we have some even better news: This year’s COLA is the largest we’ve seen since 1981! All recipients of Social Security benefits will see their payments rise by 8.7 percent, beginning with January’s payments. The average beneficiary will see a boost of $146, making the average Social Security payment now $1,827.
Social Security determines cost of living adjustments by examining data from the Consumer Price Index, which measures the rate of inflation. The new COLA reflects rising inflation, and is intended to help retirees make ends meet. But will it be enough? Retirees often face different expenses than the average urban worker, upon whom the Consumer Price Index data is based.
Luckily, Medicare premiums are also decreasing just a bit. That’s great news in a time of rising healthcare costs! The standard Medicare Part B premium will drop by a little over five dollars, to $164.90 per month. Most Medicare beneficiaries are responsible for the standard Part B premium, but about seven percent pay higher premiums based on their higher taxable income, so check with your Medicare professional to be sure of your own premiums.
Of course, managing your Medicare plan remains an important part of keeping your budget in line during retirement. Comparing your options during Medicare Annual Election Period and Medicare Advantage Open Enrollment can help you access the most appropriate plan for you that also helps you to manage out of pocket expenses. Give us a call when it’s time to enroll in a plan, and we can offer free, professional guidance with this very important decision.