Page 31 - October 2017 The Castle Pines Connection proof

Social Security
COLA set to be
largest in years
By Daniel Williams
If you are currently receiving Social Security, you are about to get a raise. According to the Senior Citizens League, the cost-of-living (COLA) adjustment for 2018 is forecasted to be about 2 percent, the biggest increase since 2012. Unfortunately, for many seniors, a significant portion of that increase will be eaten up by higher Medicare premiums. Still, next year’s increase will dwarf this year’s, which was a minuscule 0.3 percent, as well as that of 2016, when there was no increase at all.
The COLA is tied to the Consumer Price Index (CPI), which has been rising of late after a long period of stagnation. From 2013 to 2015, the CPI hovered somewhere around 1.5 percent, which resulted in lower COLAs for those years. But as most retirees are keenly aware, the COLA has been falling behind inflation for years, mostly due to steep inflation in healthcare costs. The Senior Citizens League found that Social Security recipients have lost nearly a third of their purchasing power since 2000. Even more troubling, they gave up 7 percent just in the 12 months ending in June 2017.
One way to combat the dwindling purchasing power of Social Security is to make sure you claim your benefit in the most strategic way possible. If you are at or nearing age 62,
you may fare much better in the long run by delaying your first claim for benefits. Perhaps your spouse’s lifetime earnings were greater than yours. In that case, you may be able to claim a benefit based upon his or her earnings. There are several factors to consider before you file for benefits, so be sure to check out the benefit calculators on the Social Security Administration’s website (www.ssa.gov) before you file for benefits.
The Next Chapter
CastlePinesConnection.com 31 Mid-October is time to start reviewing
Medicare health and prescription drug plans
Information provided by the Centers for Medicare and Medicaid Services
Each year, there are new health plans and prescription drug coverage choices. For individuals who currently have a Medicare plan, it is important to review your current health and prescription drug coverage each fall, and make sure that your plan is still right for you. You should have received the Medicare & You 2017 handbook in September that you can review. The handbook is also available online at Medicare.gov.
Plans do change from year
to year, so during open enrollment, which is October
15 through December 7, you
can review and make changes
to your supplemental health and prescription drug plans for the next year. Be sure to look over your Medicare Advantage and Part D plans every open enrollment.
If you are already in a Medicare
Advantage Plan, you can use Open Enrollment to switch back to Original Medicare.
If you signed up for your supplement health and prescription drug plans with an insurance broker or insurance company you can contact them to go over your coverage, or you can contact Medicare online, in person, or on the phone. Visit www.medicare.gov or call 1-800-633-4227. TTY is 1-877- 486-2048.
If you have limited income and resources, you may qualify for “extra help” to pay your prescription drug costs. Visit socialsecurity.gov/i1020 to apply online. Or, call Social Security at 1-800-772-1213 and ask for form SSA-i1020.
The 2016 Medicare Review Plan brochure can be found at www.medicare.gov/Pubs/pdf/11220- Yearly-Medicare-Plan-Review.pdf. It has not been updated for 2017 but it does have a lot of useful current information.