WHY is 2009 a GREAT Time To Be A SENIOR?
2009 is a GREAT time to be a SENIOR because Social Security benefits will increase 5.8%!! Courtesy of Uncle Sam, in January over 50 million Americans receiving Social Security benefits will benefit from this 5.8% raise, which is the largest since 1982. So, way overdue! Medicare also announced that for the first time in eight years, your Part B monthly premium (which covers doctors & outpatient services) will NOT GO UP next year.
Every year since 1975, Social Security has given automatic cost-of-living adjustments to keep up with inflation. For 2009 the adjustment is a 5.8% increase. This means that the "average" monthly Social Security check for an individual will go from $1,090 to $1,153 - an increase of about $63.
The average retired couple, both receiving benefits, will enjoy a monthly increase of about $100. The maximum Social Security benefit any worker can get at full retirement age in 2009 will be $2,323 per month.
The average disabled worker's benefit will increase $58 per month to $1,064. The federal monthly payment for an individual will go from $637 a month for an individual to $674, and from $956 to $1,011 for a couple. The maximum amount of earning subject to the Social Security tax will increase from $102,000 to $106,800.
Retirees who work and receive benefits but are under full retirement age will see their 2009 earnings limit increased to $14,160 (it was $13,560 in 2008). That limit jumps to $37,680 (up from $36,120 in 2008) the year a worker reaches full retirement age.
On the flip side, for those wealthier Seniors, the news isn't as good. Their premiums will increase based on their income level. For individuals with incomes of $85,000-$107,000, or married couples filing joint tax returns with incomes of $170,000-$214,000, their Part B premium will be increased to $134.90 per month in 2009. Individuals earning $107,000-$160,000 (couples $214,000-$320,000) will pay $192.70. Individuals with incomes of $160,000-$213,000 (couples $320,000-$426,000) will pay $250.50. Individuals who make over $213,000 or couples over $426,000 will pay $308.30.
Other notable Medicare announcements youshould know include your Part B deductible, which will not change in 2009. It will remain $135. But, your Part A (hospital insurance) annual deductible will go up $44 in 2009 to $1,068 for hospital stays up to 60 days. That increases to $267 per day for days 61-90 and to $534 a day for days 91-150.
For more information on the 2009 Social Security cost-of-living adjustments, visit www.socialsecurity.gov
Courtesy of Yvette Smith, Senior Real Estate Specialist® REALTOR®
WILLIAMSBURG REAL ESTATE
5350 Discovery Park Blvd
Williamsburg Virginia 23188