Posted on 12/11/2022 6:17:46 AM PST by Oldeconomybuyer
* Social Security beneficiaries will soon see bigger checks to help them cope with record high inflation.
* As Social Security statements roll in, you should troubleshoot for errors that can cost you.
* Also keep in mind that higher income this year may affect your income taxes and Medicare premium surcharges in the future.
As inflation has kept prices high in 2022, Social Security beneficiaries may look forward to a record high cost-of-living adjustment in 2023.
“Your Social Security benefits will increase by 8.7% in 2023 because of a rise in cost of living,” the Social Security Administration states in the annual statements it is currently sending to beneficiaries.
The 8.7% increase will be the highest in 40 years. It is also a significant bump from the 5.9% cost-of-living increase beneficiaries saw in 2022.
The increase is “kind of a double-edged sword,” according to Jim Blair, a former Social Security administrator and co-founder and lead consultant at Premier Social Security Consulting, which educates consumer and financial advisors on the program’s benefits.
“It’s good for people on Social Security,” Blair said. “It’s not so good for the economy with inflation.”
Social Security benefit checks will reflect the increase starting in January.
The average retiree benefit will go up by $146 per month, to $1,827 in 2023 from $1,681 in 2022, according to the Social Security Administration The average disability benefit will increase by $119 per month, to $1,483 in 2023 from $1,364 in 2022.
What’s more, standard Medicare Part B premiums will go down by about 3% next year to $164.90, a $5.20 decrease from 2022. Medicare Part B covers outpatient medical care including doctors’ visits.
(Excerpt) Read more at cnbc.com ...
No current Medicare premium is 170.00 next year will be 164 a decrease
I disagree on your advantage plan comment. Mine costs me nothing, I get free dental and eye exam benefits, practically free specialist visits, cap on out-of-pocket, international coverage, quarterly free stuff, gym membership, and on and on. Oh, I get to go the Christian-staffed clinic I’ve always gone to. I suppose it matters if you live in a bad city.
People think Medicare Advantage is a great option, but what they don’t realize is that these are plans that work like HMOs; they make money by reducing services. When Medicare HMOs started almost 20 years ago, the insurance companies lied, and told people they were cheaper, but benefits were as good as regular Medicare. That was a lie, and they got in trouble for it. The insurance company is in business to make money. They can’t do that if they provide the same benefits as regular Medicare. I’ll never forget a patient we had on the floor when I was a hospital RN. She was diagnosed with advanced lung cancer, but she had been reporting a cough to her doctor for 2 years, but he had never ordered a chest X-Ray. He told her, after the diagnosis, that her HMO had refused to allow him to order one. Maybe he could have pushed for one, or maybe he tried and they wouldn’t relent; I don’t know, but the patient was the big loser.
The problem is that the premium can be the same for someone who makes twice as much as the threshold amount.
That just isn’t right.
My point is that there is no way to accurately plan to stay below a threshold.
For example, this year, I have sold some stocks. For my 2022 taxes, I have already totaled all of my sources of income and right now, I am below one of the 2023 thresholds that have just been published. Now I could guess at the 2024 thresholds, using past history & inflation, and sell some more stocks. Or I can wait until January to sell the stocks.
I worked in the healthcare sector when Medicare Advantage was released. They have HMO, POS, PPO and FFS. The plans available are designated by your zip code. Currently, I have PPO and am very happy with my medical benefits. I also have dental, vision and hearing benefits. I will never have Original Medicare as long as Medicare Advantage is available but to each their own.
Lt cap gains are the same for a little or a lot. If you see you are going to enter a new higher band sell well into it but try not to exceed it. For the higher rate get your money’s worth.
Maybe I’m over thinking it but I’ m pissed off.
Which is exactly what I have done. Once again, the only IRS published thresholds are for 2023, based on 2021 MAGI. The best I can do is make an educated guess as to what 2024 thresholds will be based on 2022 income. If I make a bad guess, I could accidentally go slightly over the threshold. But I won't find that out until late November 2023.
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