Boost Your Social Security Benefits

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Discover how to maximize your Social Security benefits. Learn strategies for a secure retirement today! Visit SafeMoney.com for expert insights. Good news! Next year, Social Security beneficiaries will get their biggest raise since 2012. The Social Security Administration reports that monthly benefits will receive a 2% Cost-of-Living Adjustment (COLA) in 2018. For the average retiree, the increase amounts to around $27 extra a month. For the year, it adds up to an extra $324 in benefit payments. Social Security beneficiaries will see increased payments in January 2018, while increased payments for SSI beneficiaries will begin on December 29, 2017. While this is welcome news, another development may offset the increased benefits for retirees. Many retirees actually may see little or no increase in payments. Most beneficiaries have Medicare Part B premiums taken from their Social Security . For those who have benefited from the “hold harmless” provision of Medicare law in recent years, Medicare may eat into some or all of the raise. Let’s get more into the details of this now. Medicare to Offset Benefits Raise? First, let’s address “hold harmless.” Under Medicare law, the “hold harmless” clause means Medicare Part B monthly premiums can’t go up at a faster pace than Social Security’s yearly cost-of-living increases. This helps ensure that net benefits from Social Security do not decline.   In Medicare Part B, most participants pay a base charge for coverage. Higher-level income earners pay surcharges as well. In 2017, the base charge amount was $134. The trustees of Medicare predict that this will stay the same in 2018. More on that in a bit. The hold harmless provision applies to 70% of Medicare participants who are enrolled in the Medicare and Social Security programs. Those outside the protection of hold harmless are: People who have delayed filing for Social Security benefits Persons who paid Medicare surcharges due to higher income levels Individuals who are newly enrolled in Medicare Part B People who are certain retired state or retired federal government workers For the past two years, Social Security COLAs have been meager or not given at all. In 2016, Social Security saw no cost-of-living increase. As a result, the monthly premium amount for those protect