The Social Security Administration announced Tuesday that monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 62 million Americans will increase 1.7% in 2013.
But some retirement groups are worried that a looming Medicare Part B premium increase that could consume most of that extra money reflects a worrisome trend of health-related costs consuming a larger share of retirement resources.
The 1.7% cost of living adjustment (COLA) will begin with benefits that more than 56 million Social Security beneficiaries receive in January. Increased payments to more than 8 million SSI beneficiaries will begin on Dec. 31, according to the Social Security Administration.
Despite the increase, most Social Security recipients may not receive bigger benefit checks as the increase could be mostly offset by higher Medicare Part B premiums, which typically are deducted from Social Security benefits, according to the Insured Retirement Institute (IRI).