Social security benefits recipients will get an increase in benefits from a cost-of-living raise of 1.7% in 2013, almost half of the 3.6% increase received in 2012.
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But the increase may be offset for many by higher Medicare premiums. Average retirees will receive $21 more in benefits. If current tax laws are allowed to expire, Social Security contributions will rise to 6.2% of paychecks. Currently, a 2% payroll deduction is in place.
The Social Security earnings cap reduces benefits by $1 for every $2 earned over the cap. The cap will increase in 2013 to $15,120, up from $14,640 in 2012.
The exact cost increase for Plan B Medicare benefits has yet to be announced. Estimates so far indicate there will be an increase.
This shows how health-care costs, which increase as people age, will eat into retirement income.
Forty-two percent of Boomers expect Social Security benefits to be a major part of their retirement income.
Only 37% of Boomers are confident they will have enough money
to cover medical expenses during retirement.