Sigh. Holding retirees (somewhat) harmless for inflation is not a “raise.” Published by Jane the Actuary View all posts by Jane the Actuary
4 thoughts on “Forbes post, “It’s Time To Stop Calling Social Security’s Annual Increase A ‘Raise’””
Is Medicare going to get more of this raise. Every year I get a cost of living, Medicare takes more of it.
Linda Reisinger, the answer is yes! A whoping 15%. You will draw less in 2022 than you did in 2021.
One consideration that seems not ever mentioned is that while social security is based on earnings and years worked (which I have no argument with) the increase based on inflation is geared towards higher increases for those that get more to begin with. I think a fairer way to do it would be to take the average monthly check and give everyone an increase based on the percentage of the average. In reality the government in the current system is creating class differences.
One thing to have reported as well. Part B of Medicare increased by 15% to a $170.10 deduction plus an added IRMAA or Income Related Monthly Adjusted Amount. Basically, your 2022 Social Security amount will be less than the amount in 2021.
Check the facts!