Social Security COLA for 2021

It looks like Senior will see a modest increase in Social Security for 2021 !

Seniors who count on social security as the only source of their income, essentially earn less each year as the cost of living adjustment doesn’t begin to keep pace with actual medical inflation. For 2021, expect 1.3% increase which is about $14 per month for the average retiree.

This is on pace with past years. The average cost of living increase since 2010 has been 1.4%.

Many don’t realize that COLA is based on the Consumer Price Index and essentially, tied to the price of oil. Yada, yada but what does this really mean for you and your family? Each year you get less from the government so the burden is on your to try to find savings in your Medicare and Rx insurance plans.

Most people are reluctant to EVER change from the Medicare insurance plan they purchased at age 65. They are scared of change. Inertia is comforting. No need to interview a new agent or learn the procedure with a new company. This failure to act is an expensive luxury that most seniors cannot afford!

Check out these stats on inflation for the past 20 years.

Since 2000, the COLA has gone up 53%, but the cost of living for American elderly has gone up over 93%.

Medicare Part B costs have gone up 218% since 2000.

Medicare Part D — The cost of prescription drugs have gone up over 200%.

People should consider working longer and taking Social Security later (to max out the payment). If you or your family member must stop working and take Medicare at age 65 and Social Security is the main or only source of income, here are some tips:

Find an agent who specializes in Medicare, not someone who does mostly life, annuities, home & auto or group insurance. If you need a recommendation of a Medicare agent near you, email me below.

Find an agent who is not captive to one insurance company. Every Medicare insurance company has a telesales department (not staffed by licensed insurance agents) that will happily sell plans. But if your plan is less competitive next year, the company will never alert you that you’d be better off with a competitor. Only an independent licensed agent can tell you the good, bad and ugly about all the plans on the market.

As medical inflation eats away at your Medicare dollars, take the time to shop you benefits. There may be some savings available to you that dramatically stretch your budget!

If you’d like to be referred to a local, independent Medicare agent contact me at sgordon@gordonmarketing.com.