January 23, 2022

Social Security Benefits Get a 5.9% Increase This Year — Now’s When You Should See That Extra Money | Personal Finance

Finally, if your birthday falls between the 21st and 31st of the month, your benefit should arrive on the fourth Wednesday of each month. So you should see your COLA on January 26th.

You may not be getting your COLA in full

If you collect social security but still have to enroll in Medicare, you should see your monthly benefit increase by 5.9%. But if you’re enrolled in Medicare Part B and therefore pay your premiums directly from your benefits, your increase may look less substantial.

The reason? Medicare Part B premiums rose to $171.10 this year, up from $148.50 in 2021. That’s an increase from $21.60. So if you receive your first Social Security payment of the year, it reflects a COLA of 5.9% minus that Part B premium increase, leaving you with less cash in your pocket.

How to get the most out of your COLA . fetches

It has been many years since Social Security has come close to a 5.9% increase. Even if you lose some of that money to higher Medicare costs, it still pays to bank on as much of that increase as possible to build yourself a financial buffer.

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