Social Security raise won't go too far
Next year's cost-of-living adjustment for Social Security beneficiaries is 1.7 percent. For an average recipient getting $14,880 a year, that's a yearly increase of about $250. Credit: iStock
Planning your 2013 budget? If you are collecting Social Security, you'll get a raise. But the extra income may be eaten up by higher costs. Next year's cost-of-living adjustment for Social Security beneficiaries is 1.7 percent. For an average recipient getting $14,880 a year, that's a yearly increase of about $250.
Where will the extra money go? First, there will probably be an increase in the Medicare Part B premium deducted from Social Security paychecks. The amount is still to be determined, but the monthly premium — currently $99.90 for most Medicare recipients — is expected to rise about $7 a month, or $84 a year.
As for other costs, a new survey from the government found that expenditures for people 65 and older rose an average $2,371 in 2011 compared to 2010. The only good news: Expenditures on drugs fell 11.3 percent, primarily because of the Medicare Part D drug plan.
