Social Security recipients have a new reason to anticipate the new year. It seems that recipients will receive an increase in their monthly payments starting Jan. 1, 2017.
Now, this does not mean that everyone should jump up and down because the change will not be that noticeable. The increase will be .3 percent, which translates to an extra $5 a month. Sure, $5 seems minuscule, but to a frugal Social Security recipient, it could mean an extra $60 a year, which is nothing to laugh at.
More than 60 million retirees, disabled workers, spouses, and other people receive Social Security benefits. A lot of people stand to gain a little extra each month under this new increase. Of course, it should be noted that many Social Security disability recipients will also have an increase in Medicare Part B premiums the upcoming year. This is not going to affect everyone, but it might offset this slight boost.
It should be noted that new enrollees and beneficiaries who get their Part B premiums directly may end up paying $13 more each month. This does include recipients who decided to defer their claim to Social Security. Beneficiaries who are considered high-income recipients, which means that they are making $85,000 or more, will end up paying around $428 a month. Couples that make $170,000 will pay this amount too.
It is no secret that Social Security recipients usually do not receive an increase in payment. That is the way Social Security works, but there are instances when this changes. Those who are interested should pay attention to the correlation between the cost-of-living adjustment and the government’s Consumer Price Index. There must be a significant inflation drop to ensure that there is an increase in Social Security benefits that year. Inflation usually goes up, but lately, there have been some major drops, which could be thanked for this little boost. This should be helpful for those who are frugal enough. It might also be helpful for those who try to stay healthy by practicing preventative care and a healthy lifestyle.
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There was a 1.5 percent increase in 2014 and a 1.7 percent increase back in 2015, so these benefit hikes do occur from time to time. Surely, many recipients in the United States are hoping that this is not the only increase they see, and hopefully, it is correlated to a decrease in Medicare premiums, but that is something that they will have to wait for.