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The cost-of-living adjustment — the largest in more than 40 years — means the average recipient will receive more than $140 extra a month beginning in January, the Social Security Administration said Thursday. The Consumer Price Index is up 8.2% for the past 12 months.
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The boost in Social Security benefits will be coupled with a 3% drop in Medicare Part B premiums, meaning retirees will get the full impact of the Social Security increase. “This year’s substantial cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising," said the Social Security Administration’s acting commissioner.
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About 70 million people receive Social Security benefits. The annual Social Security and Medicare trustees report released in June says the program’s trust fund will be unable to pay full benefits beginning in 2035. If the trust fund is depleted, the government will be able to pay only 80% of scheduled benefits, the report said. Medicare will be able to pay 90% of total scheduled benefits if the fund is depleted.