Social Security Administration has once again announced a 0% cost-of-living adjustment for the coming year, affecting some 60 million retirees.
The government maintains that low gas prices—which dropped almost 30% in the last year—have helped keep inflation low, negating the case for a cost-of-living adjustment in 2016.
Unfortunately, as InvestmentNews reports, one of a retiree’s main expenses—not accounted for in government calculations—is health care. And, for some retirees, those costs continue upward:
“While the majority of Medicare recipients will continue to pay the same monthly US$104.90 base amount for Medicare Part B as they did this year, some beneficiaries’ rates could increase as much as 52% starting in January.”
Meanwhile, The Wall Street Journal reports that officials who oversee the Medicare program at the Department of Health and Human Services are reviewing ways to reduce the increase.
Speaking to the WSJ, 75-year-old June Bretzin—who continues to works part-time to supplement her pension income—said, “You find ways to cut corners: cut back on travel, your entertainment, going out to eat.”
Today’s average Social Security check is US$1,224.
Editor’s Note: Why cut corners when you could live a far better life overseas? Find out the 21 best places to retire overseas—on as little as US$735 a month—in our Annual Retire Overseas Index.