Social Security's Upcoming Raise Is Shrinking for This Big Reason
Earlier this year, seniors on Social Security got some pretty good news. Next year, Social Security benefits will be eligible for a 5.9% cost-of-living adjustment (COLA), leaving seniors with their largest raise in decades. In fact, the Social Security Administration estimates that once that boost is implemented, the average monthly benefit will increase from $1,565 to $1,657, representing a $92 monthly raise.
But that doesn't mean the average senior is about to get $92 richer per month. Thanks to an upcoming increase in the cost of Medicare, Social Security's 2022 raise may fall short of expectations.
Though Medicare Part A, which covers hospital care, is free for most enrollees, Part B, which covers diagnostic and outpatient care, charges a monthly premium that can change from year to year. This year, the standard Part B premium is $148.50, though higher earners pay more. Next year, the standard Part B premium is jumping all the way up to $170.10. And for seniors who pay their Part B premiums through Social Security, that extra money will come right out of their benefits, leaving them with less income to enjoy.
Source Fool.com