Nov 2, 2018 4 min read

The Social Security Administration recently announced that most recipients’ SS benefits will rise 2.8 percent in 2019. This is the largest increase in seven years.

This cost-of-living increase will help many retirees keep up with inflation. SS is one of a few retirement income sources that have inflation protection built in. This is another reason to try to maximize your benefits.

More good news was delivered one day later, when Centers for Medicare & Medicaid Services announced that Medicare Part B premiums were increasing by only $1.50 per month. Part B premiums are usually subtracted from a person’s SS check. People 65 or older who are on Medicare, but not yet receiving SS, are billed quarterly by CMS for these premiums.

There still are about 2 million Medicare beneficiaries who pay less than the full Part B premium. These so-called “held harmless” are older recipients who are still catching up from years when there was no increase in cost of living. They do not get the new cost of living until their Part B catches up to everyone else.

Many Medicare Advantage plans in this area had no, or very small, premium increases in our area. This is because of the battle between the two largest insurers. There will be some changes in networks this year, so it is important to review all of your doctors and medications before the end of open enrollment Dec. 7.

There has become an increasing trend of people waiting a little longer to begin taking Social Security benefits. In 1997, 57 percent of men claimed SS when they reached age 62. In 2017, only 34 percent did so.

There are several reasons for this. In 1997, many people received a pension that would last for a lifetime. Today, many people only have 401(k) plans. These are not guaranteed to last your whole life. This also encourages some people to work to an older age, and there is an earnings test if you start SS before your full retirement age.

A recent study by Harvard Medical School found that early retirement is more costly for women. Many retire when their husband does. Some women who are a few years younger than their husband are leaving employment during their peak income years.

Also, because SS uses your 35 highest income years, women may reduce their potential income by missing these high-income years. This can be magnified if they took some years out of the workforce to care for children or elderly parents. Because women tend to live to an older age than men, they have a greater chance to outlive their savings.

If you visit a nursing home, you will see many more women residing there than men. This means their health-care costs are often more than men. The National Institute on Retirement Security says, “Women are 80 percent more likely than men to live in poverty after age 65.”

The Social Security Administration issued a warning Oct. 10 about an ongoing impersonation scheme. People are receiving calls from individuals pretending to be government agencies, saying things such as, “Your Social Security number is going to be deactivated or deleted.” The caller then asks the person to call a number provided to resolve these problems, then ask for your personal information. Do not call these numbers.

If you receive one of these calls, report it to the Office of Inspector General at 1-800-269-0271.

Gary Boatman is a Monessen-based certified financial planner and author of “Your Financial Compass: Safe passage through the turbulent waters of taxes, income planning and market volatility.”

To submit columns on financial planning or investing, email Rick Shrum at rshrum@observer-reporter.com.