Retirees Are About to Receive an Unexpected Gift

Retired workers should see an unprecedented boost in income next year. That’s because the 8.7 percent Social Security cost-of-living adjustment — the largest COLA in four decades — coincides with a drop in Medicare Part B premiums. An article in The Motley Fool calls this a once-in-a-lifetime event that should help all beneficiaries. The average retired worker will receive an extra $151.20 per month in Social Security in 2023.

According to the Social Security Administration, the 8.7 percent COLA will boost the average benefit for retired workers to $1,827 per month, or an additional $146 per month. At the same time, the standard Medicare Part B premium will fall 3 percent to $164.90 per month next year. This will save most beneficiaries $5.20 monthly or $62.40 over the course of the year.

So if we do the math, our calculation shows the average retired worker will receive an additional $151.20 per month in 2023, or $1,814.40 for the full year. That’s welcome news for older Americans struggling with inflation!

But The Seniors Trust believes we need to do more to help financially strapped retirees. We want Congress to enact the Social Security Expansion Act. This landmark piece of legislation will increase benefits by about $200 per month, establish a fairer COLA calculator that reflects the unique expenses facing seniors, and creates a strong and long-lasting Social Security Trust Fund, ensuring that the fully promised benefit amounts continue to be paid far into the future.