Social Security Benefits Increasing by 3.2%
This week, the Social Security Administration announced a 3.2% cost of living adjustment for Social Security benefits1. Although a lower increase than the previous two cost-of-living adjustments, 5.9% in 2022 and 8.7% in 20232, the adjustment is higher than the 20-year average of 2.6%. This increase will go into effect beginning with the January 2024 payment.
Using the average monthly Social Security benefit of $1,848, the increase will add an additional $59 per month or $708 per year.
Medicare Premiums on the Rise
After a bit of relief in 2023 with a decrease in Medicare Premiums, the Medicare Part B premiums have now been increased for 2024. Beginning January, the baseline Part B premium is $174.70 (up almost $10 from 2023). The increase also affects the Income-Related Monthly Adjustment Amounts (IRMAA); those with higher income will experience a proportionately higher adjustment to their premiums as well.
In addition to the higher premium, the Medicare Part B deductible has increased by $14 to $240.