Social Security's 2025 COLA estimate inches up but Medicare Part B premium may wipe it out

[Duaine]

The latest estimate of Social Security's cost-of-living adjustment for 2025 rose to 3.2% after the government reported that April inflation was in line with economists' forecasts, new calculations showed Wednesday.

Medicare wildcard​

Expected Medicare Part B premiums for 2025 are likely to eat up most, if not all, of COLA's rise, Johnson said.

"Medicare’s Trustees estimate that the standard Part B premium for 2025 will increase at nearly double the rate of the COLA," she said.

In the Medicare Trustee report released last week, the Trustees estimated Part B premiums would climb by $10.30 a month in 2025 to $185.00. That's an increase of 5.9% from $174.70 in 2024.

COLA doesn't factor in Medicare Part B premium increases.

"Nevertheless, Part B premiums are one of the fastest growing costs in retirement, and those premiums are deducted directly from Social Security benefits," Johnson said.

[EXTERNAL LINK] - Social Security's 2025 COLA estimate inches up but Medicare Part B premium may wipe it out

 

[Tom in RI]

The average monthly Social Security check (according to the google) is $1767/month. A 3.2% increase would be $56/month. I doubt Part B will be going up $56/month.

 

[kgmom219]

The trustees scream about a huge increase in May or June of every year.

Congress says “hold my beer” and lowers it.

It’s an election year. I’ve got $20 that its going to be $179.50 and a $249 deductible on B. Middle number holds.

 

[somarco]

(Some) seniors just like to complain.

A few years ago when the B premium held (no increase or decrease) I knew folks who complained because groceries cost more and they needed more SSA to cover THEIR cost of living.

 

[LostDollar]

(Some) seniors just like to complain.

A few years ago when the B premium held (no increase or decrease) I knew folks who complained because groceries cost more and they needed more SSA to cover THEIR cost of living.

Caveat, not an agent.

Those are legitimate complaints.

Although I will concede that a core problem is that Social Security was not meant to be the sole retirement income source that many of us wind up using it as.

 

[LostDollar]

The average monthly Social Security check (according to the google) is $1767/month. A 3.2% increase would be $56/month. I doubt Part B will be going up $56/month.

Caveat, not an agent.

You make a good point, a 3.2% increase in one number may not be enough to wipe out an increase of 3.2% in a second number.

However, keep in mind that the increased costs for medicare related health insurance that a SS recipient must deal with are not limited to a Part B premium. There are deductibles for Parts A, B, and D. There may be increases in Part D premiums. There may be increases in Medigap premiums. And for those of us with HD Medigap plans, the HD Medigap deductible also increases each year.

Then the SS recipient must deal with the increased costs of goods and services (including medical services) they need during the year.