Understanding Social Security Benefits
So you may have heard that Social Security and SSI benefits will increase by 0.3 percent in 2017. But do you understand why 0.3% and not something higher (or lower)?
Image may be NSFW.
Clik here to view.
According to the Social Security Administration, Social Security Cost of Living Adjustments (COLA’s) are determined by an inflation index, which is a government measure of consumer prices tied to the Department of Labor’s Consumer Price Index (CPI-W).
RELATED: Does Medicare pay for my Scooter?
The CPI-W rose this year. When inflation increases, your cost of living also goes up. Prices for goods and services, on average, are a little more expensive. Since the CPI-W did rise, the law increases benefits to help offset inflation. As a result, monthly Social Security and SSI benefits for over 65 million Americans will increase 0.3 percent in 2017. – SSA.gov | 10/18/16
Social Security Raise of $4 per month
Did you know the average retired person (on social security) receives a monthly Social Security benefit of $1,355? That means, the 0.3 percent COLA translates to around $4 a month. Matthew Frankel at Newsweek says that “this is the smallest percentage increase in a non-zero COLA year since the system was implemented in 1975.”
RELATED: What does Medicare Cover?
Medicare Part B Premium Rises $4.10 per month
Even though some are applauding the COLA increase of 0.3%, there is also some not-so-good news for 2017. Medicare Part B premiums, (which cover physician services, outpatient hospital services and medical equipment), will increase from $104.90 per month, to $109.00 per month (averages). That means… IF you’re participating in Medicare Part B, your entire COLA is wiped out.
What Now?
Some just claim this is the typical cat-and-mouse game the government is playing with Americas retirees, others think it’s far worse. But if you’re only bringing in $1,355 per month, and trying to make it – You can use all the COLA’s you can get!
<<Previous Article: Americans spend billions on lottery games
Next Article: Weight Loss for Seniors–It’s Complicated>>
The post Understanding 2017 Social Security Benefits appeared first on The Senior List.