2023 Will Bring a Monster Social Security COLA. Here's How Much Your Benefits Check Could Rise.
Nearly nine out of ten people age 65 and older currently receive Social Security benefits, and the past year has been tough for many of those seniors. In 2022, the standard Medicare Part B premium climbed 14.5% to $170 per month. That figure accounts for 10.2% of the average monthly benefit paid to retired workers in August, up from 9.6% in 2021, meaning seniors had to shell out more of their Social Security checks to cover the cost of medical care this year. And that's only the beginning of the problem.
Not only did the 5.9% cost-of-living adjustment (COLA) enacted last year fail to cover to the rising cost of Medicare premiums, it also failed to keep up with inflation in general. Retirees have seen their benefits stretched thin by the rapidly rising prices of food, gas, electricity, and other necessities throughout the year. In fact, The Senior Citizens League (TSCL) estimates that the average Social Security benefit fell short by $417 year-to-date through August.
Fortunately, seniors are on pace to see a monster COLA in 2023.
Source Fool.com
