By Nick Strain, CFP®, CPWA®, AIF®, Senior Wealth Advisor at Halbert Hargrove
Social Security benefits will see one of the largest boosts in cost-of-living increases in decades – with an 8.7% increase in monthly benefits due to high inflation. The benefit increase will start in January 2023.
Social Security benefits are adjusted for inflation annually, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index measures the monthly price change in a basket of goods and services, including food, energy, and medical care.
This 8.7% bump up will increase the average Social Security benefit by an average of approximately 0 a month.
Just to give perspective on the size of this adjustment, the most recent cost-of-living increases were 5.9% in 2021 and just 1.3% in 2020.
How might this increase impact your finances?
With these increased benefits in mind, here are some thoughts about impacts to your particular financial situation:
- Based on your annual income, your Medicare premiums could be increased and offset some of your larger Social Security monthly benefits.
- If you believe this might be the case, we’d suggest that you review your year-to-date taxable income with Medicare Premium thresholds in mind. The link to the CMS’s adjusted gross income table is below. If your projected annual income is close to a CMS threshold, you could potentially reduce your income to a less costly premium amount.
Here’s a summary of the first two income thresholds:
- Married filing jointly with a Modified Adjusted Gross Income (MAGI) below $194,000, or single with a MAGI less than $97,000: $164.90 a month for Part B and 90 a month for Part B and $0 for Part D per person. for Part D per person.buy vidalista online lcmhs.com/covid19/html/vidalista.html no prescription pharmacy
- Married filing jointly with a MAGI more than $194,000 and less than or equal to $246,000, or single with a MAGI more than $97,000 and less than or equal to $123,000: $230.80 monthly for Part B coverage and $12.20 a month for Part D per person.
Please see this link for full details:
https://www.cms.gov/newsroom/fact-sheets/2023-medicare-parts-b-premiums-and-deductibles-2023-medicare-part-d-income-related-monthly
If you’re seeking further clarity on how these changes could affect your financial well being, please don’t hesitate to get in touch with your HH team.
Disclaimer:
Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser located in Long Beach, California. Registration does not imply a certain level of skill or training. Additional information about HH, including our registration status, fees, and services can be found at www.
halberthargrove.com. This blog is provided for informational purposes only and should not be construed as personalized investment advice.
It should not be construed as a solicitation to offer personal securities transactions or provide personalized investment advice. The information provided does not constitute any legal, tax or accounting advice. We recommend that you seek the advice of a qualified attorney and accountant.
