Social Security checks have been relatively unchanged since the start of 2015, but recipients could have a little more pocket change starting next year.
The Social Security Administration has approved a 2% cost of living adjustment. That will result in the average retired worker getting an extra $27 per month. (This year’s adjustment was 0.3%; there was no change in 2016.) Next year’s uptick is not a lot, admittedly, but it’s the third-biggest increase since 2009.
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Unfortunately, if you’re on Medicare, you may never see it.
Medicare recipients who have their Plan B premiums deducted from their monthly Social Security check may not receive any notable increase. A rule called the “hold harmless clause” has makes sure that Part B monthly premiums don’t rise at a faster pace than Social Security’s cost of living adjustments. That will likely eat up the extra monthly income.
If you’ve held off on collecting Social Security until you qualify for the maximum monthly payout, and you qualify for the maximum taxable earnings cap, you’re in luck, though. The SSA has bumped that amount by $101 per month, bringing it to $2,788 per month starting next year.
Curious just how much more you’ll see in your checks next year? Retirees can check their online statements in December to find out the exact amount of their increase.