The Bureau of Labor Statistics has unveiled a 3.6% cost of living adjustment for Social Security recipients, but most retirees will not see the full benefit increase in 2012.
The Bureau of Labor Statistics, Washington, D.C.,says this is due to the expected increase in Medicare Part B premiums, which are deducted from recipients’ Social Security payments. This will affect the approximately 75% of Social Security recipients who were exempted from Part B premium increases in 2010 and 2011 when there was no COLA.
“It is evident that Americans can no longer rely solely on Social Security and pensions to provide guaranteed income through retirement,” said Cathy Weatherford, chief executive officer of the Insured Retirement Institute, Washington, commenting on the bureau’s announcement. “It is vitally important for all Americans to create holistic retirement plans that will truly guarantee retirement income.
“As an historic number of Americans approach retirement, we are seeing growing uncertainty in sources of retirement income that have traditionally been considered a ‘guarantee,’ such as Social Security and pensions,” she added. “This has left many boomers concerned about retirement.”