The government announced Wednesday that Senior citizens will soon get their first raise in three years. Social Security recipients will receive a cost of living adjustment of 3.6% starting in January. Because inflation has been very low in recent years, beneficiaries have not gotten a COLA increase since 2009.
However, most seniors are not likely to receive the full amount of the COLA increase because the expected hike in Medicare premiums could eat up part of the raise. The change in Medicare premiums, which could increase by a double-digit rate, should be announced next month.
According to the Social Security Administration, Social Security benefits represent about 41% of the elderly’s income, but 22% of married couples and 43% of singles rely on the monthly checks for 90% of their income.