It’s been a tough year for many retirees on fixed incomes.
Rising prices, a turbulent stock market and concerns about a possible recession are leaving many older Americans stressed about their financial future.
But it’s not all doom and gloom. There’s actually a few things to look forward to in 2023, including bigger Social Security checks and lower Medicare costs.
4 Good Things on the Horizon for Retirees in 2023
Here are four things people approaching or already in retirement can look forward to in 2023.
1. Social Security Checks Are Getting Bigger
If you’re on Social Security, you can expect your check to increase by 8.7% in January. It’s the biggest cost-of-living adjustment in four decades.
That’s equivalent to an extra $147 a month on average in your pocket.
Of course, there’s a reason for the record cost-of-living adjustment (COLA) — inflation. The price of everything from groceries to housing keeps going up, so an extra 8.7% might not seem like much.
What makes this year different is that the rising COLA won’t be eaten up by rising Medicare Part B premiums (more on that shortly).
Plus, if inflation starts to decline next year, retires still benefit from their bumped-up Social Security checks — at least until the new COLA is calculated in October 2023.
2. Medicare Premiums Are Going Down
Medicare benefits will pay less for their Part B premium next yearthe first decrease in a decade.
The standard Medicare Part B premium will be $164.90 a month in 2023, down from $170.10 in 2022. The Part B deductible is also going down.
The combination of higher Social Security checks and lower Medicare Part B premiums is great news for retires. Most years, Social Security COLAs are eaten up by rising Medicare costs. (Most retires get their Part B premium deducted from their Social Security checks.)
That means more money in your pocket, which is welcome news during high inflation.
But the good news comes with a caveat:…