Small Raise for Seniors: Will It Be Enough?

Next year, seniors and other Social Security beneficiaries will see a small boost in their monthly checks. The increase is 2. 8%, which works out to about $56 more per month for the average person. This change is meant to help with rising costs, but it might not be enough. Health care costs eat up a big chunk of this increase. Seniors spend a lot on Medicare, and the cost of Part B, which covers doctor visits, is going up. If the forecast is right, the Part B premium will go up by $21. 54. That means almost half of the COLA increase will be used up just paying for health care. Living costs vary a lot depending on where you live. In New York City, a single senior needs about $30, 936 a year to cover basic needs like housing, food, and health care. But in Birmingham, Alabama, that same person would need only $21, 576. Housing and health care costs make the biggest difference. Many seniors are already struggling financially. A recent study found that 80% of Americans over 60 wouldn't have enough money to handle a financial emergency. Things like a serious health problem or the need for long-term care could be a big problem. The COLA increase is based on the Consumer Price Index, which tracks the cost of everyday items. This year's increase is similar to the past two years, after some very large increases during the pandemic when inflation was high. Starting in early December, the Social Security Administration will let people know their new benefit amounts. If you need help with costs like health care, food, or housing, there are resources available to check if you qualify for assistance.