Recently the Social Security Administration announced that most people’s SS benefits will rise 2.8% in 2019. This is the largest increase in seven years. This cost of living increase will help many retirees keep up with inflation. Remember, SS is one of a few retirement income sources that have inflation protection built in. This is another reason to try and maximize your Social Security
More good news was delivered one day later when CMS announced that Medicare Part B premiums were only increasing by $1.50 per month. Part B premiums are usually subtracted from a person’s SS check. People 65 or older, who are on Medicare, but not yet receiving SS, are billed quarterly by CMS for these premiums. There still are about two million Medicare beneficiaries who pay less than the full Part B premium. These so called held harmless are older recipients who are still catching up from years when there was no increase in cost of living. They do not get the new cost of living until their Part B catches up to everyone
Many Medicare Advantage plans in this area had no, or very small, premium increases in our area. This is because of the battle between the two largest insurers. There will be some changes in networks this year so it is important to review all of your doctors and medications before the end of open enrollment on December
There has become an increasing trend for people to wait a little longer to begin taking Social Security benefits. In 1997, 57% of men claimed SS when they reached age 62. In 2017, of 34% did so. There are several reasons for this. In 1997 many people received a pension that would last for a lifetime. Today, many people only have 401(k) plans. These are not guaranteed to last your whole life. This also encourages some people to work to an older age and there is an earnings test if you start SS before your full retirement
A recent study by Harvard Medical School found that early retirement is more costly for women. Many women retire when their husband does. Since women are often a few years younger than their husband, they are often leaving employment during their peak income years. Also since SS uses your 35 highest income years, women may reduce their potential income by missing these high income years. This can be magnified if they took some year out of the workforce for children or to help elderly parents. Since women tend to live to an older age than men, they have a greater chance to outlive their savings. If you visit a nursing home, you will see many more women patients than men. This means their health care costs are often more than men. The National Institute on Retirement Security says, “Women are 80% more likely than men to live in poverty after age
The Social Security Administration issued a warning on October 10th about an ongoing impersonation scheme. People are receiving calls from people pretending to government agencies. They say things such as your Social Security number is going to be deactivated or deleted. The caller then asks the person to call a number provided to resolve these problems. They will then ask for your personal information. Do not call these numbers. If you receive one of these calls, you can report it to the Office of Inspector General at 1-800-269-0271.