The average Social Security recipient will get a $5 raise next year. Yes, a whopping $5 per month. In 2017, Social Security’s mean monthly benefit is projected to rise – from the current $1,355 – by this scant amount, all because of low yearly inflation measured by the federal government.
Here’s our last 5 years and the annual COLA. Everyone I talk to that receives Social Security feels their personal inflation has been much higher than these changes!
2017 0.3%
2016 0.0%
2015 1.7%
2014 1.5%
2013 1.7%
And making it worse … Medicare payments might jump for some seniors. While most Social Security recipients will see all of their 2017 “raise” go toward covering Medicare Part B premiums, some may not.
Federal law governing Social Security limits annual Medicare Part B premium increases for 70% of Social Security recipients, with the other 30% left to shoulder most of the burden. Just who makes up that other 30%? Seniors who will be enrolling in Part B for the first time in 2017, Social Security recipients whose income already prompts them to pay higher Part B premiums, and people who currently receive Medicare benefits, but collect no Social Security.
Those groups could see their Part B premiums rise 22% next year – $149 a month, according to the latest Medicare Trustees Report – unless the federal government acts fast. In late 2015, a large premium increase was reduced when the U.S. Treasury loaned $7 billion to Medicare.
I know this may be difficult news for some. If we need to make any changes please give me a call.
To Your Best 2nd Half,
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss.
