The new COLA increase is about to be in your bank accounts. Most of you must have received a notice from Social Security by now. From early December SSA started sending beneficiaries a notice. There you could see the corresponding amount which has been updated. For those who still do not know, the COLA is the cost-of-living adjustment. It helps consumers catch up with inflation prices to maintain their purchasing power.
Social Security also allows you to see the new check on your my Social Security account. It is not as simple as applying 8.7% to your pension. There are some people who will receive over 8.7% while others will not get as much. SSA takes into account your PIA, which is your Primary Insurance Amount. This amount might be completely different to your benefit. So, that is why it is always best to wait and see the notice.
Bear in mind that the amount you get for your retirement benefits depends on the age you retire. It is not the same to retire at the age of 62 as at the age of 70. So this age is affecting your COLA and thus the money you get. If you waited up until your Full Retirement Age to retire, it is more than likely that your monthly check and PIA are the same. There are many retirees who have already retired by the age of 62, so they do not match.
Who will receive more money than just the COLA?
Starting in 2023, some Social Security beneficiaries will see an increase of 8.7% in their payments. Additionally, those who are enrolled in Medicare Part B will see a decrease in premiums for the year. This decrease in premiums will result in a higher cost-of-living adjustment (COLA) for those who are already enrolled in Medicare. However, those who are enrolling in Medicare for the first time in 2023 will not see the full COLA increase, as their benefits will be reduced by the cost of the Part B premium.
It’s important to note that those who switch from Original Medicare to Medicare Advantage (MA) may also see a reduction in their Social Security payments. This is because MA plans often come with additional costs that may be deducted from the beneficiary’s Social Security benefits. Ultimately, it’s important for those receiving Social Security and Medicare to carefully consider their options and choose a plan that best meets their needs and budget.
Social Security Administration warns citizens of scams. Remember that whenever you would like to check your COLA notice online, you can do it for free. Do not provide any personal information to those who may be scammers and may want to steal your money. Or else they may want to carry out identity theft. Do not pay any fees since they may want to charge you for something that is free. Use your my Social Security account to check it.