The Social Security Administration (SSA) announced that Social Security recipients will receive a whopping 8.7 percent cost-of-living adjustment (COLA) for 2023. Anyone 60 years or older will have this 8.7% credited to their Social Security even if they are not taking payments currently. This adjustment will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023 and increased payments to more than 7 million Supplemental Security Income (SSI) beneficiaries will begin on December 31, 2022.1
An increase in SS and Medicare Savings
The Social Security increase is still substantial even though inflation has also increased significantly. In addition to SS benefit increases, Medicare costs are expected to go down in 2023. The Part B premiums and deductibles will go down after the government health insurance plan spent less than projected in 2022. The standard Medicare premiums for Part B beneficiaries will be $164.90 a month in 2023 rather than $170.10 a month, as it was in 2022.2 Supplemental health insurance is available for what Medicare does not cover and the premium is debited from Social Security. It can be confusing to sort out all your options and we work with a specialist who can assist you.
How You Will Be Notified
According to the Social Security Administration, Social Security and SSI beneficiaries are usually notified about their new benefit amount by mail starting in early December. However, if you’ve set up your SSA online account, you will also be able to view your COLA notice online through your secure “My Social Security” account.1 It is a good idea to log into your online Social Security account to verify all of your information is correct. And remember to apply for benefits 60-90 days prior to when you want to start receiving them.
If this increase surprises or concerns you, it's always a good idea to seek guidance from your financial professional about changes to any of your sources of retirement income.
Talk with Deb to review your situation and gain some perspective on how these changes can impact you.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.