Seniors will soon have its first increase in three years, the government announced Wednesday.
Social security recipients will receive cost of living adjustment of 3.6% since January.Because Inflation was very low in recent years, the beneficiaries have not received a COLA increase since 2009, when they received a rate of 5 , 8%.
But most older people are not likely to receive the full amount of the COLA increase, because the expected increase in premiums for Medicare Part B can eat a portion of a recovery. The change in health insurance premiums will be announced next month.
The last two years of benefits remained the same, many older people were protected from the increase in Medicare premiums because of a provision of "liberation", which protects over 70% of the beneficiaries. These recipients will not see their monthly bill checking Social Security, Medicare for the excursion.
But high-income recipients and new entrants will see their benefits reduced because they are not covered by this provision. Health insurance premiums increased 4.4% for 2011.
COLA increases are good news for many older people who have seen their costs rise, while the monthly Social Security checks have remained flat, said David Certner, legislative policy director of AARP.
Social Security plays an important role in maintaining the elderly and disabled in the feet. Nearly 55 million people receive Social Security benefits. The average monthly check for the elderly jumps to $ 43, $ 1,229, while people with disabilities, will increase to $ 39 and $ 1,111.
Social services account for about 41% of elderly income under the Social Security Administration. But 22% of married couples and 43% of singles are dependent on the monthly check for 90% of their income.
10000000 could pay more social security payments.
Many elderly people have been under pressure as banks are paying virtually no interest on savings accounts and stock market declines have eroded their retirement accounts. In addition, health care costs are skyrocketing.
"This is good news for older people, who no doubt feel abandoned," said Certner. "When you talk to people, do not feel the costs are down."
Social security recipients will receive cost of living adjustment of 3.6% since January.Because Inflation was very low in recent years, the beneficiaries have not received a COLA increase since 2009, when they received a rate of 5 , 8%.
But most older people are not likely to receive the full amount of the COLA increase, because the expected increase in premiums for Medicare Part B can eat a portion of a recovery. The change in health insurance premiums will be announced next month.
The last two years of benefits remained the same, many older people were protected from the increase in Medicare premiums because of a provision of "liberation", which protects over 70% of the beneficiaries. These recipients will not see their monthly bill checking Social Security, Medicare for the excursion.
But high-income recipients and new entrants will see their benefits reduced because they are not covered by this provision. Health insurance premiums increased 4.4% for 2011.
COLA increases are good news for many older people who have seen their costs rise, while the monthly Social Security checks have remained flat, said David Certner, legislative policy director of AARP.
Social Security plays an important role in maintaining the elderly and disabled in the feet. Nearly 55 million people receive Social Security benefits. The average monthly check for the elderly jumps to $ 43, $ 1,229, while people with disabilities, will increase to $ 39 and $ 1,111.
Social services account for about 41% of elderly income under the Social Security Administration. But 22% of married couples and 43% of singles are dependent on the monthly check for 90% of their income.
10000000 could pay more social security payments.
Many elderly people have been under pressure as banks are paying virtually no interest on savings accounts and stock market declines have eroded their retirement accounts. In addition, health care costs are skyrocketing.
"This is good news for older people, who no doubt feel abandoned," said Certner. "When you talk to people, do not feel the costs are down."
