After two years of no increases, Social Security recipients will see a 3.6 percent increase in their monthly benefits in 2012, the Social Security Administration announced today.
The 3.6 percent cost-of-living adjustment (COLA) will begin with benefits that nearly 55 million Social Security beneficiaries receive in January 2012. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2011.
However, the 2012 premiums and deductibles for Medicare may absorb most of that increase. Medicare is expected to announce soon its Medicare Part B premiums and deductibles for Part A and Part B of Medicare for 2012.
Longevity Alliance recommends that seniors calculate their health care costs for 2012 when the new Medicare premiums are announced. It can also be a good time to speak with a long term care insurance agent about the cost of long term care insurance. Some Medicare supplement plan companies offer their customers a discount on long term care insurance plans.