Social Security and Medicare Changes
1.The full retirement age rising
The full retirement age for new retirees born in 1959 will be 66 years and ten months in 2025, 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 1959, 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.COLA
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 mailed out new cards between April 2018 and April 2019. This was the last major upgrade to Medicare cards, having a new Medicare number that is unique to you, instead of Social Security number, on the 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 1959 will be 66 years and ten months in 2025, 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 1959, 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.COLA
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 mailed out new cards between April 2018 and April 2019. This was the last major upgrade to Medicare cards, having a new Medicare number that is unique to you, instead of Social Security number, on the 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.