For those seniors who rely solely on Social Security benefits for their retirement, the excitement generated by news of the largest cost-of-living adjustment (COLA) in four decades (5.9 percent) will quickly disappear.
According to The Motley Fool, there are two factors cutting into the anticipated increase beginning in January.
The first piece of bad news is the Medicare Part B premium for routine doctor visits and other care is increasing 14.5 percent. It will rise from $148.50 monthly to $170.10. So there goes $21.60 of what you were looking forward to. In addition, the deductible for Part B is increasing by $30 from $203 to $233.
Basically, the new Medicare costs will eat up the average COLA increase by one-third.
The bad news continues with the knowledge that basic inflation now is running around 6.2 percent, with most analysts expecting it to go higher. Suddenly, that 5.9 percent COLA hike doesn’t look so good. Predictions are that food, heating, and transportation costs will continue to rise. Many seniors may have to dip into their savings to make ends meet.
Council of Seniors Wants to Put Money in Your Pocket
Inflationary times put a real focus on seniors’ budgets. That’s why here at Council of Seniors, we’re working tirelessly to get Congress to pass The SAVE Benefits Act. This law must become a top priority issue. It’s designed to make up for COLAs that haven’t kept up with inflation in recent years in order to return $581 to seniors.
Take time now to sign our petition. Let’s work together to show Washington politicians they can’t keep ignoring this problem.
Were you aware of the Medicare increases? Leave us a comment and let us know.
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