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The annual Cost of Living Adjustment, or COLA, for senior citizens, disabled people and others who receive Social Security benefits, is based on the third-quarter Consumer Price Index. Mark Hamrick at Bankrate said the index has been rising close to 9% year-over-year, which will translate into a big pay hike for about 70 million Americans in 2023.
“We’re talking about roughly one-quarter of the U.S. population. And a good number of these people are relying on Social Security as the sole means of financing their retirement,” he said.
Older Americans are especially vulnerable to rising health care costs. And here they’re in for a bit of unexpected relief, said Tricia Neuman at the Kaiser Family Foundation.
“Medicare Part B premiums are going down. That’s a very rare occurrence,” she said.
Those premiums — which are deducted from seniors’ Social Security checks — will decrease by about $5 per month.
That’s because the system’s actuaries over-budgeted for a new Alzheimer’s drug that ended up not getting used very much, saving Medicare money.
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