The Government Giveth and the Government Taketh Away
The Social Security Administration recently announced that more than 65 million recipients will receive a 2% cost of living adjustment (COLA) in 2018. For the average retiree, that means an increase of $27.00 per month. Yet before you make plans on what to do with this extra money, most retirees will find that the 2% increase is eaten up by a jump in Medicare Part B premiums.
While Medicare Part B premiums for 2018 haven’t been announced, for most retirees they are expected to be approximately $134.00 per month - meaning an increase of about $25.00 per person. Unfortunately, this will nearly wipe out any increase in Social Security income.