Retirees Claiming Social Security and Medicare Are In for Rare Savings Combination in 2023




  • In Business
  • 2022-10-06 11:18:39Z
  • By GOBankingRates
Zinkevych / iStock.
Zinkevych / iStock.  

Retirees will get a rare (and much needed) treat in 2023 thanks to a combination that some experts say might never happen again: a historically high cost-of-living adjustment for Social Security benefits and a decline in the cost of Medicare Part B premiums.

Social Security: No Matter Your Age, Do Not Claim Benefits Until You Reach This Milestone
See: The Best Cities With Great Weather To Retire on $2,000 a Month

Last week, the Centers for Medicare & Medicaid Services announced that the standard monthly premium for Medicare Part B enrollees will be $164.90 in 2023, down from $170.10 in 2022 - the first decline in a decade. The annual deductible for all Medicare Part B beneficiaries will fall to $226 in 2023 from $233 in 2022.

Those cheaper premiums and deductibles will coincide with what will be the highest COLA in decades. As GOBankingRates previously reported, the adjustment should be 8.5% or higher in 2023, up from 5.9% in 2022 and the biggest hike since an 11.2% increase in 1981. The Social Security Administration is expected to announce the official 2023 COLA in mid-October, following the September 2022 inflation numbers.

Even if the 2023 COLA is on the low end of projections, at 8.5%, it would translate into an extra $130 or so a month for the typical Social Security beneficiary. That's based on the average monthly benefit for all recipients, which was $1,546.59 as of August 2022, according to the SSA.

Retirees who claim both Social Security and Medicare typically see their Part B premiums taken out of their Social Security checks, The Motley Fool reported, which will contribute to even higher Social Security benefits in 2023.

The one-two punch of a much higher COLA and lower Medicare Part B premiums is something "we may never see again in the rest of our lives," Mary Johnson, Social Security and Medicare policy analyst at the non-partisan Senior Citizens League, told The Motley Fool.

And it comes at a good time for retirees, many of whom have been hit hard by soaring inflation and rising health care costs.

Take Our Poll: Do You Think You Will Be Able To Retire at Age 65?
Discover: Social Security Changes That May Be Coming for 2023

"[It] can really be used to pay off credit cards, to restock pantries that have gotten low because people can't afford to buy as much today as they did a year ago and do some long-postponed repairs to homes and cars," Johnson said.

  • The Safest Places To Retire Outside the US

  • Check Out Readers' Favorite Small Businesses in Our 2022 Small Business Spotlight

  • This Credit Score Mistake Could Be Costing Millions Of Americans

  • 4 Ways Women Can Prepare Their Finances for Unexpected Life-Changing Events

This article originally appeared on GOBankingRates.com: Retirees Claiming Social Security and Medicare Are In for Rare Savings Combination in 2023

COMMENTS

More Related News

Social Security and COLA: How Much Will Benefits Boost in 2023?
Social Security and COLA: How Much Will Benefits Boost in 2023?

With the impending close of 2022, you might be making resolutions for the new year, including keeping a closer eye on what's in store for Social Security and...

Watch Out for These 3 Social Security Scams - How To Protect Yourself
Watch Out for These 3 Social Security Scams - How To Protect Yourself

Scammers are making out big in 2022. With the rise in digital payments, inflation relief checks issued by various states throughout the year and the upcoming...

Here
Here's how much the typical baby boomer has saved for retirement - how do you stack up right now?

And if you're behind? It's OK boomer. There's still some time to catch up.

Memphis People in Business: Dec. 1, 2022
Memphis People in Business: Dec. 1, 2022

A look at promotions, hirings, movers and newsmakers in the Memphis area business scene

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business