What Social Security’s Cost of Living Increase in 2022 Means for You, Ep #69 

<p>The cost of living for 2022 will be the highest it’s been in 40 years. What does that say about inflation? What is the increase of social security payments? How will it impact Medicare Part B premiums? I’ll cover what these changes mean for you in this episode of the Retirement Made Easy podcast! </p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[3:52] The social security cost of living increase announcement</li> <li>[7:30] The Medicare Part B premium is taken from your social security benefit</li> <li>[11:36] Why the social security system is broken</li> <li>[14:30] Listener question: how to protect your retirement money</li> </ul> <h2>Social security’s cost of living increase announcement</h2> <p>Every year around mid-October, the Social Security Administration announces whether or not there will be a cost of living increase for the next year. In three of the last 12 years, there was no increase. But starting January 2022, social security payments will increase 5.9%. That’s the <em>largest increase in over 40 years</em>. </p> <p>The greatest risk retirees face is that the cost of living is constantly increasing. Anyone who doesn’t account for that—such as those with a fixed pension—may struggle to pay for basic necessities. It’s given that if you’re planning for a 30-year retirement, you’ll run into higher costs of living. Social security will give you a “raise” some years and others they won’t.</p> <h2>The Medicare Part B premium is taken from your social security benefit</h2> <p>If you weren’t already aware, the Medicare Part B premium comes out of your social security benefit. In 2021, the Part B premium—depending on your tax bracket—is $148.50. If you’re expecting $2,000 a month from social security, you have to reduce it by the amount of your Medicare Part B premium. Don’t let it surprise you!</p> <p>In November, Medicare will officially announce what the premium will rise to in 2022. It’s expected to be about a $10 per month increase from $148.50 to $158.50. Why does