Social Security Beneficiaries to Get 8.7% Raise
Ironically, the increase in Social Security monthly payments will start in January, by which time inflation likely will be trending downward on account of the Federal Reserve’s aggressive hiking of interest rates to thwart rising prices.
Retirees will also benefit from recent moves by the Biden administration to lower prescription drug costs as part of the Build Back Better Act; as part of that legislation, insulin prices for diabetics were capped and additional support was provided for people to get health insurance.
There is also a drop in Medicare Part B premiums for 2023, bringing some relief to seniors when they visit doctors or use other outpatient services such as home health care.
The Social Security Administration’s acting Commissioner Kilolo Kijakazi told The Associated Press that the combination of lower Medicare premiums and the rise in benefits “will give seniors more peace of mind and breathing room.”
It’s not every day that 20% of the U.S. population gets a big raise, but that is what happened Thursday when the Social Security Administration announced that recipients of its retirement benefits will get an 8.7% cost of living increase next January.
The cost of living adjustment, or COLA, comes after the 66 million recipients received a 5.9% increase at the beginning of the year. The adjustments are based on the current rate of inflation.
The Bureau of Labor Statistics reported Thursday that the consumer price index rose at an annual rate of 8.2% in September.
Ironically, the increase in Social Security monthly payments will start in January, by which time inflation likely will be trending downward on account of the Federal Reserve’s aggressive hiking of interest rates to thwart rising prices .
“This may be the first and possibly the last time that beneficiaries today receive a COLA this high,” Mary Johnson, an analyst who tracks COLA for the Senior Citizens League, a nonpartisan advocacy group for retirees, told Marketwatch.Retirees will also benefit from recent moves by the Biden administration to lower prescription drug costs as part of the Build Back Better Act; as part of that legislation, insulin prices for diabetics were capped and additional support was provided for people to get health insurance . Seniors are among the highest users of medical services.There is also a drop in Medicare Part B premiums for 2023, bringing some relief to seniors when they visit doctors or use other outpatient services such as home health care .
The Social Security Administration’s acting Commissioner Kilolo Kijakazi told The Associated Press that the combination of lower Medicare premiums and the rise in benefits “will give seniors more peace of mind and breathing room.”
