Will Your Social Security Income Decrease Next Year?
May 29 2009
Even if the inflation rate is in negative territory this year, Social Security income will remain stable but…it is possible some of you will have less Social Security income in your pockets.
This can occur if you are new to Medicare in 2010 or if you are in the upper income groups of Medicare Part B and D premium rates. Part D probably won’t be a factor for most since military retirees don’t tend to have Part D.
New Medicare enrollees pay the rates in effect at enrollment. If you enroll after a rate increase, you pay the higher amount. The result is your Social Security income remains stable from 2009 to 2010 but you pay higher Medicare premiums than the 2009 people did.
Part B premiums are due to increase for the upper income groups. With no COLA increase expected for Social Security and a Part B premium increase for upper income groups, your Social Security take-home pay will be less than last year. The upper income group is defined as those with incomes above $85k for singles and $170k for couples.
