I recently found an interesting article about the double whammy facing some retirees next year with no COLA adjustment to their monthly Social Security benefit and a potential 52 percent increase in Medicare premiums. This will only affect those who are not protected by the “hold-harmless” rules, which currently is about 30% of beneficiaries. Specifically, wealthy beneficiaries whose earnings are $85,000 for an individual or $170,000 for a married couple.
Why is this important to you? Healthcare costs are rising and strains are already being put on the Social Security system. This may only be the beginning of this erosion of benefits. Retirement strategist, Sharon Carson, says “When you combine it all, it’s looking pretty ugly” and “Congress will probably go back to that well again.” Her opinion is that the income thresholds could very well be lowered in the future which would cause many more retirees to bear the burden of increased insurance costs. Whether it impacts you now or could in the future, this is an important variable to consider in retirement planning.
How do you protect your retirement future from these changing variables? You start planning now with a financial planner you trust and will take a conservative approach to Social Security projections. If you are ready to start down the path to planning your financial future, give us a call.