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A monthly payment increase of 8.7% is anticipated for Social Security recipients. The following illustrates how far it can go while taking into account various other costs during this period of still-high inflation:
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A 70-year-old who made $50,000 a year and retired at age 65 would have received a benefits check that was around $2,063 per month less than it would have been had the previous rate of retirement benefits been in effect.
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They will probably now receive a check for $2,242.48, an increase of around $179 per month, due to the new 8.7% rise.
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The current rate of inflation, which is 7.1%, is lower than the rise in the cost of living.
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Medicare, on the other hand, is used as the primary insurance by a large number of Social Security users, and rates there increased by 9.2% in 2021 and might have done so again in 2022.
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The cost of hospitals, out-of-pocket medical expenses, and prescription prices all rose in 2021.
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In the upcoming years, health spending is expected to increase even more, according to the Centers for Medicare & Medicaid Services. This cost of living adjustment may not be enough to cover the aforementioned costs for some retirees.
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According to several economists, the economy will continue to face difficulties throughout 2023 as well as high levels of inflation.