Social Security recipients will have an increase of 5.9% in 2022. This increment is the largest raise in the last 40 years.
However, the Social Security increase will not be enough to fully cover the COLA if you have a Medicare Part B costs.
The COLA will increase the average retirement check for everyone.
The inflation increased above 6%, and the Social Security recipients saw a 5.9% increment.
Nevertheless, Medicare Part B premiums will increase by $21.60 from last year, according to Mary Johnson, Social Security and Medicare policy analyst at The Seniors Citizens League.
“Your effective COLA, after deducting for Part B premiums, will be less than 5.9% and, depending on the size of your monthly Social Security check, may be a lot less,” Johnson said.
COLA is linked to the consumer price index. The problem is that Medicare Part B premiums are not tied to COLA.
Now, the rise in Social Security is $59. The beneficiary is receiving $1,059 per month. But the Medicare cost increased by $22, leaving the user with $888.90 per month.
The quantity is almost 50% less than the COLA increase.