Social Security COLAs, high inflation, and Medicare premiums
Lorie Konish of CNBC explains how the 5.9% cost of living adjustment (COLA) will impact people. She notes the latest figures on inflation show it at 6.8% year over year. Medicare premiums are on the rise, though all but higher income people will be protected from an actual cut in net pay to their benefit due to the hold harmless provision. Those who pay income-related premiums are excluded from that protection, as they pay the standard premium plus an extra charge known as an Income Related Monthly Adjustment Amount, or IRMAA. This affects about 7% of beneficiaries. Konish also explains how income tax can affect benefits, as they have never been adjusted for inflation since 1993. Full article here.