YOU get a raise… and YOU get a raise!
The Social Security Administration is giving everyone receiving benefits a raise in 2023!
The SSA announced it will be providing an 8.7% cost of living adjustment (COLA) in benefits next year. This means that approximately 70 million Americans receiving Social Security and/or Supplemental Security Income (SSI) will see an increase, on average, of more than $140/month starting in January. This COLA is tied to the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
But wait! There’s more good news, as it was announced that Medicare premiums for Part B are going down in 2023 from $170.10 to $164.90. The Part B deductible will also shrink, from $233 this year to $226 next year. Many don’t realize they’re actually paying premiums on Part B premiums, or if they do, they don’t know how much, because the premiums are automatically deducted from their Social Security benefits. No checks are written or deductions taken from a bank account. They likely won’t see the premium payments unless they review the annual Form 1099 the SSA sends each year. In any event, these reductions will put a few more dollars into the pockets of our seniors relying on this fixed income.
Beneficiaries should keep an eye out for a notification in the mail from Social Security this month regarding their new benefit amount. Of course, a beneficiary may also log onto www.ssa.gov/myaccount to access their account and immediately find out their new benefit amount.
If you’re worried your income may be insufficient to cover long term health care costs, even with the pay bump, you’re welcome to talk to one of our expert attorneys to discuss ways to protect your estate. Just send us a note, and we can get some time on the calendar soon! Let’s Talk!