Posted on 10/02/2022 8:38:18 AM PDT by george76
One of the biggest advantages of Social Security is that its payments get annual cost-of-living adjustments (COLAs). When inflation is high -- as seniors have seen during the past couple of years -- these COLAs cause monthly checks to rise the following January to help retiree purchasing power keep pace. 2022's COLA boosted benefits by 5.9% this year, and early estimates make it likely that the COLA that will take effect in early 2023 will be between 8% and 9%.
What's even better news is that, unlike in 2022, many Social Security recipients are more likely to see the full amount of their cost-of-living adjustment actually hit their bank accounts. That's because the impact of another key program for older Americans, Medicare, is likely to reverse the painful blow it dealt participants this time last year.
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The 5.9% COLA that took effect at the beginning of 2022 increased benefits for about 70 million Americans.
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However, even those who were eligible for those benefits didn't see their actual checks rise that much. That's because the Social Security Administration automatically withholds Medicare premiums for those recipients who have enrolled in Medicare.
In 2022, the increases in Medicare costs for retirees were extremely high. Medicare Part B premiums jumped 12.7% in 2022, from $148.50 in 2021 to $170.10 this year. That took away $21.60 per month out of that $90 average benefit boost.
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much of the increase came from a single factor: the Biogen Alzheimer's drug Aduhelm
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Don't go spending that money just yet..
(Excerpt) Read more at nasdaq.com ...
Thanks for posting.
The standard monthly premium for Medicare Part B enrollees will be $164.90 for 2023, a decrease of $5.20 from $170.10 in 2022.
source: 2023 Medicare Parts A & B Premiums and Deductibles 2023 Medicare Part D Income-Related Monthly Adjustment Amounts
I bet most of you don’t know your SS payment can be lowered too. It’s happened to me twice. I sold off long held pieces of real estate after retiring, both sales resulted in capital gains in the low $200k range.
After reporting those sales on my tax returns and paying the capital gains taxes on time and in full, my SS payments were lowered by over $200 a month for 2 years both times. I’m still collecting less as I write this.
Thank you.
In 1984, the federal government began taxing Social Security benefits following bipartisan approval of legislation in Congress. Initially, beneficiaries who met the income threshold had to pay taxes on 50% of their Social Security benefit, but a second threshold was added in 1993, beyond which 85% of benefits were subject to taxation.
Oddly, neither threshold has ever been adjusted for inflation, and ..
In 1984, less than 10% of beneficiaries actually owed taxes on their benefits, but each COLA since that time has pushed more seniors over the income threshold. As a result, 47% of beneficiaries owed taxes on Social Security income in 2010, and that figure is expected to reach 58% by 2030.
After my Medicare premium increase last year was deducted I received a net 1% increase from Social Security to deal with last year’s transitory inflation.
I know there was a tax on investment real estate capital gains that was made part of Obamacare law, and used to claim that tax was going to help pay for Obamacare, but I do not understand, legally, how or why it would impact your social security payment - unless something was worked out to pay the excess income tax due to the capiatl gains over a two year period via you raising the income tax deducted from your social security benefit. I don’t see how that was done “behind your back”.
“much of the increase came from a single factor: the Biogen Alzheimer’s drug Aduhelm”
So we got screwed on Medicare because Medicare decided to cover this very expensive but totally worthless drug with potentially long term dangerous side effects. Our politicians are totally owned by big pharma.
41% of Adulhem patients had brain swelling or bleeding
https://www.advisory.com/daily-briefing/2021/11/29/aduhelm-side-effects
Does anyone know of a calculation that shows the comparison if the money taken out of our checks were invested in the S&P 500 and not just kept by the government?
I keep wondering if I’d be way better off. I thought Corpus Christi did this for their employees but that was quite a while ago.
Amazingly, my supplemental insurance actually went down $15/mo this year.
Do SS recipients still have to pay taxes on Social security they paid into on already taxed income, AKA the senator Joe whazzizname SS tax?
Or we’re still pretending SS is a taxable gift from the government?
I have been drawing full SS for nearly two years, the wife gets her first payment next month. So, yeah, wo-hoo.
“ In 1984, the federal government began taxing Social Security benefits following bipartisan approval of legislation in Congress…”
If you can find out Tge sponsor of that bill through the costly google cover up you’re good. It was someone who’s seen many cover ups -still ongoing
I became disabled a year before full retirement. Disability just puts me back where I would be if I went full term
Yes, i did read on the SS website, before i retired, that capital gains can affect the amount of drawn SS after your payout begins. Didn’t have an explaine as to how that came about. The only capital gain i would have is the home i live in. That home is in a living trust. So, plan accordingly.
Yes.
Koch Brothers don’t like Social Security, and they find Cato, so no surprise
As long as conservatives keep bashing Social Security, Dems will keep using that against them in elections. It really isn’t worth fighting a program that has existed for eight decades and is relied on by tens of millions. Unless you like losing elections. That’s why Trump told candidates to stop badmouthing Social Security.
Medicare is means tested based on income. Medicare Part B and Part D require higher income earners to pay higher premiums for their plan. If you have Part B and/or Part D benefits (which are optional), your premiums will be based in part on your reported income level from two years prior.
This means that your Medicare Part B and Part D premiums in 2022 may be based on your reported income in 2020.
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