Uncle Sam to 60 Million Americans: “You’re Getting a Raise!”

11:11 am Elder Law, Estate Planning, Retirement Planning

Here’s some good news for over 60 million Social Security and SSI beneficiaries  … you’re getting a raise!

The US government recently announced a cost of living adjustment of 3.6% for both Social Security and SSI beneficiaries. The raise benefits SSI beneficiaries starting in December 2011 and Social Security beneficiaries starting in January 2012.

This is the first “raise” beneficiaries have received in three years. Many seniors will of course welcome this news, as many have felt the effects of the economic recession, the stock market decline, and the fact that banks are paying almost zero interest on savings accounts.

The increase in Social Security income will be especially welcomed by those seniors who will be experiencing a hike in Medicare premiums in the next year. In the past, many of those seniors were shielded from such an increase due to a “hold harmless” provision that protects more than 70% of Medicare beneficiaries.

Even with the expected increase in Medicare premiums, most seniors are simply glad to see Uncle Sam acknowledging the rising cost of living. While most recipients of Social Security do have an alternate form of income (with SS benefits representing a little less than half of their earnings), many rely on their monthly check for a sizable portion of their income.

For more complete information about the coming changes in Social Security and SSI, or for help understanding how this change may affect you and your estate planning, please contact our office.

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