Social Security and Medicare Changes
1.The full retirement age rising
The full retirement age for new retirees born in 1956 will be 66 years and four months in 2018, which will be increasing by two months. Your full retirement age, which is determined by your birth year, is the age that you are eligible to receive 100% of your monthly benefit payment. Therefore, if you are born in 1956, you are going to have to wait even longer to receive 100% of your benefits, or you’ll have to be willing to accept a big reduction in your lifetime payouts.
2.The biggest COLA in years
Although there are still six months to go in the 2018 COLA (cost of living adjustment) countdown, it is highly probable that seniors will obtain their largest COLA in years. Social Security’s COLA is governed by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If the CPI-W falls year-over-year, there is no COLA. In other words, beneficiaries will receive the same benefit payment without a raise. On the other hand, if there is a raise, beneficiaries will receive the difference rounded to the nearest tenth of a percent.
3.New Medicare card
Medicare will mail new Medicare cards between April 2018 and April 2019. Your will see a new Medicare number that is unique to you, instead of Social Security number, on your new card. This new system will protect your identity. The new card will not change your coverage or benefits.
Be mindful that Medicare will never contact you for your Medicare number or other personal information. Do not share your Medicare number or other personal information with anyone who contacts you by phone, email, or by approaching you in person. Also, you do not need to take any action to get your new Medicare card.
The full retirement age for new retirees born in 1956 will be 66 years and four months in 2018, which will be increasing by two months. Your full retirement age, which is determined by your birth year, is the age that you are eligible to receive 100% of your monthly benefit payment. Therefore, if you are born in 1956, you are going to have to wait even longer to receive 100% of your benefits, or you’ll have to be willing to accept a big reduction in your lifetime payouts.
2.The biggest COLA in years
Although there are still six months to go in the 2018 COLA (cost of living adjustment) countdown, it is highly probable that seniors will obtain their largest COLA in years. Social Security’s COLA is governed by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If the CPI-W falls year-over-year, there is no COLA. In other words, beneficiaries will receive the same benefit payment without a raise. On the other hand, if there is a raise, beneficiaries will receive the difference rounded to the nearest tenth of a percent.
3.New Medicare card
Medicare will mail new Medicare cards between April 2018 and April 2019. Your will see a new Medicare number that is unique to you, instead of Social Security number, on your new card. This new system will protect your identity. The new card will not change your coverage or benefits.
Be mindful that Medicare will never contact you for your Medicare number or other personal information. Do not share your Medicare number or other personal information with anyone who contacts you by phone, email, or by approaching you in person. Also, you do not need to take any action to get your new Medicare card.