Each year, Social Security benefits may increase with a cost-of-living adjustment (COLA), but higher Medicare premiums can reduce how much of that raise reaches your monthly budget. Since both are calculated differently, they do not necessarily move at the same rate. Comparing the dollar value of your COLA with changes in Medicare costs can show how much additional income you will have left.
A financial advisor can help you project how Social Security COLAs and Medicare premium changes could affect your retirement income.
How Social Security COLA Works
Social Security bases its COLA on changes in the CPI-W, which tracks the price changes for a…
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