No Social Security COLA in 2016 - Medicare Rates Rise for Millions

UPDATED with new figures as of 10/30/15:  Millions of Social Security and government pension beneficiaries will be disappointed to learn that there will be no Social Security increase in 2016.  As compensation, approximately 6 out of 7 Medicare beneficiaries will also see no increase in Medicare premiums, either.  However, there are exceptions.  In fact, approximately 14 percent or 1 out of 7 people will have a premium increase.  However, as part of the October, 2015 budget agreement, the size of the premium increase was decreased from 52 percent to approximately 14 percent over what they are currently paying.

Why There Will be No Increase in Social Security Benefits

In the past 40 years, there have only been two other times in which Social Security beneficiaries did not receive a COLA or cost-of-living adjustment.  The years in which this occurred were 2010 and 2011.  Now it has been announced that this will happen once again in 2016.

The COLA is based on the consumer price index rate of inflation.  Primarily because of lower oil prices, inflation was deemed to be too low to trigger a cost-of-living increase.  For millions of retirees who have seen their rent, property taxes, medicine or other expenses rise, this will come as a hard blow.  The majority of retirees are less impacted by changes in the price of gasoline than they are by changes in their medical and other living costs.

Most Medicare Beneficiaries Will Continue to Pay the Same Part B Premiums

The only good news in this situation is that Medicare premiums will not go up for most beneficiaries because of a "hold harmless" clause in the Medicare law.  The hold harmless clause is intended to protect most Medicare beneficiaries during years in which there is no increase in Social Security benefits.  This means that the majority of people will continue to pay the current rate of $104.90 a month during the coming year.

People who will not have a Medicare premium increase must meet these requirements:

*  They are currently paying the standard Part B premium of $104.90 and they have the premiums automatically deducted from their Social Security checks.

*  They qualify as low-income beneficiaries and their Part B premiums are paid by the state in which they live.

Millions of Medicare Beneficiaries Will See an Increase in Their Part B Premiums

While most Medicare beneficiaries will fit into one of the above categories, approximately 1 in 7 will see an increase in their premiums.  This increase will be 14 percents (down from 52 percent) because Congress passed legislation that would reduce the size of the increase.

People who will have a Medicare premium increase fall into these categories:

*  You have an above-average income that requires you to pay more than $104.90 for your Part B premiums.  You will see an additional increase, even if you also receive Social Security benefits and your premiums are deducted from it.

*  You are enrolled in Part B and receive Social Security, but you pay your premiums directly to Medicare, rather than having them automatically deducted.

*  You are paying permanent penalties for Part B, because you were late to sign up for the program.

*  You are not currently enrolled in Part B, but will sign up in 2016.  New members to the program will be paying the higher premiums.

What is Medicare Part B and How Much Will The New Premiums Be?

Medicare Part B is the program that pays for doctor visits and outpatient care.  These are the benefits that are covered by our Medicare premiums.

If you fall into one of the groups that will be paying more, most people can expect to pay $120 a month, plus a $3 surcharge, for a total of $123.  In order to reduce the size of the premium increase (which originally was going to be 52 percent), the Medicare trust fund had to take out a loan from the U.S. Treasury.  The loan will be paid back over a period of five years, using the $3 surcharge. Premiums will continue to go up over the next few years, but at a slower rate.

However, some people will pay far more than that.  Those who already pay the highest premiums because they are in the top income groups could see their premiums rise from the current level of $335.70 a month to approximately $386 a month (an additional 14 percent, plus the $3 surcharge).

Are These Rate Increases Set in Stone?

While the formula for determining who pays the higher rate and how much it will be is set by law, Medicare administrators do have the ability to intervene and "soften the impact" on those who will face the highest rate increases.

Fortunately, Congress did take action this year as part of the 2015 budget compromise and chose to soften the blow.  While millions of people will still be paying higher premiums, they will not be as bad as were originally projected.


If you are retired or facing retirement and you want more information on financial planning, where to retire, healthcare issues, and changing family relationships, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

NEW SOURCES:

https://www.yahoo.com/finance/news/medicare-premium-increases-not-bad-062532254.html

https://www.yahoo.com/finance/news/budget-deal-cutting-social-security-040000781.html

Source:  http://www.aarp.org/health/medicare-insurance/info-2015/medicare-part-b-premiums-could-spike.html

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  morguefile.com

When Will You Have Your Heart Attack?

Heart disease is the most common cause of death in the United States, despite gains that have been made in fighting this disease over the past few decades.    Even though the number of deaths from heart disease have been cut in half since 1960, about 30% of Americans will still die as a result of cardiovascular disease.  According to Harvard Health, at least one-half of all heart disease deaths could be prevented, if people would control the risk factors that are modifiable: smoking, obesity, diabetes, blood pressure and cholesterol.  In some cases, you may also have risk factors that are much harder or impossible to control:  your age, genes, and air pollution in your area, for example.

Since so many of us are likely to suffer from heart disease as we age, we need to know when we are most likely to have a heart attack.  In that way, we can be more vigilant about watching for symptoms in ourselves and our loved ones.

What are Common Heart Attack Symptoms?

Before we learn the times when we are most likely to have a heart attack, we need to know what symptoms we should watch for.  Briefly, they are:  

Unusual indigestion or nausea
Exhaustion
Chest pain
Pain in the arm, back, shoulders or jaw
Unexplained sweating
Shortness of breath
Light headedness or dizziness
Irregular heartbeat or an intense heartbeat
Faintness
A feeling of anxiety or impending doom

When Do Heart Attacks Happen?

If you, your spouse or your parents are experiencing any of the events listed below, you need to be aware that there are certain times when a person is most likely to experience a heart attack.  They are not the only times when you could have a heart attack, but you need to be especially aware if any of these things are going on in your life. There are six types of situations when researchers have noticed clusters of heart events:

The death of someone close to you - The heightened risk is strongest during the first week of grief; however, according to Swedish researchers, the elevated risk can actually last for several years!  If you are grieving the loss of someone you cared about, pay extra attention if you also seem to be experiencing any of the signs of a heart attack.

Catching the Flu - For the next three days after developing the flu, you are four times more likely to have a heart attack.  Be sure to contact your doctor if you are feeling exceptionally ill following the flu.

Experiencing a natural disaster - Isn't it awful enough to have to go through a natural disaster?  To make matters worse, survivors are three times as likely to have a heart attack over the following three weeks.

An exciting sporting event - We have all seen the movies in which someone gets so excited about a special event that they have a heart attack.  This is not so far-fetched.  Heart attack risk goes up for sports fans who get particularly emotional about their favorite sporting events.

Mondays - Yes, the first day we go back to work after being off for a few days can make us more prone to a heart attack.  Of course, we all have to go back to work sooner or later, so the best way to lesson your risk of a heart attack on Mondays is to try to start the week off as calmly as possible ... with yoga, a walk or meditation.

Shoveling snow - This is a chore that should probably be left to people who are young, healthy and in good physical shape.  The combination of cold weather and hard labor can make people more prone to a heart attack.  Take it easy.  It isn't worth the risk.

When Are You Most Like to Die of a Heart Attack?

Above you learned about the times when you are most likely to have a heart attack.  However, do you know there are certain times when you are more likely to actually die of a heart attack?  What are those days and why are they more lethal than others?

December 25, December 26 and New Year's Day are the days when you are most likely to die of a heart attack.  The cardiac event may have been triggered by drinking too much, cold weather, stress over money spent on gifts, or difficulty coping with family issues during the holidays.

Why are people more likely to actually die when a heart attack occurs on those days?

*  After over-eating a large holiday meal, the patient may mistake a heart attack for indigestion.

*  Some people may not want to disrupt the holiday festivities with a trip to the hospital, especially if they think it is just indigestion.  They don't want to interrupt the fun their family members are having.

*  By the time the patient wakes up the next day and realizes they still feel bad, it could be too late.  Patients should not wait more than 12 hours after the onset of symptoms before they seek treatment.

For the same reasons that people die on December 25, December 26 and New Year's Day,  people can sometimes be more prone to death during Hanukkah, while enjoying birthday celebrations or other special days.

If you are looking for more health and retirement information, use the tabs or pull down menu at the top of this page to find links to hundreds of additional, helpful articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  morguefile.com


Resources:

http://www.health.harvard.edu/blog/half-of-heart-disease-deaths-could-be-prevented-201506308118

"The Most Dangerous Times for Your Heart," Reader's Digest Magazine, October 2014

http://www.webmd.com/heart/features/the-truth-behind-more-holiday-heart-attacks

https://www.cedars-sinai.edu/Patients/Health-Conditions/Heart-Attack-Myocardial-Infarction

http://www.cnn.com/2010/HEALTH/12/22/hazardous.day.after.christmas/

Trilogy Retirement Communities in California

In the past year, four couples my husband and I know have purchased homes in Trilogy Retirement Communities scattered throughout California.  We have visited several of our friends in their new homes and looked at photos of the others.  All of them are proud and pleased with their new homes and communities.

All the homes are beautiful, modern, well-designed for an aging population and surprisingly affordable.  My friends paid an average of about $280,000 to $320,000 for homes that include a wide variety of amenities and upgrades.  All of them had solar panels included in their purchase price and now pay less than $10 a month for electricity.

Trilogy at Rio Vista

Our friends all love their Trilogy communities, but there is one community that I have personally visited.  That is because three of the couples we know purchased homes in the community of Trilogy at Rio Vista.  This Northern California community has a golf course and is also located on the Sacramento River Delta, which makes it possible for people to enjoy fishing and boating close to home.  There is a beautiful 27,000 square foot clubhouse, indoor lap pool with spa, outdoor pool, exercise facilities, indoor track, tennis courts, community restaurants, billiards room, learning center and more.

The indoor facilities are especially appealing because the area along the Sacramento River can get quite hot in the summer and very chilly and rainy in the winter.  However, there are also many beautiful days with temperate weather when people can enjoy outdoor activities.  Sailing or fishing along the nearby river are popular activities.

Our friends' homes are also very attractive, one-story, comfortable homes.  We have enjoyed dinner with one of the couples in their home, barbecuing on the patio and enjoying a pleasant summer evening outside.

After listening to their enthusiastic descriptions of their new lifestyles, I decided it was time to do a little more research and share my findings about other Trilogy Communities in California.

Discover the Trilogy Communities in California

Trilogy at Rio Vista
Rio Vista, California
(near the Sacramento River between Napa and Sacramento)
(Home prices start in the mid $200's)
(707) 374-1100

Trilogy at the Vineyards
Brentwood, California
(Contra Costa county east of the San Francisco Bay Area)
(Home prices start in the mid $400's)
(800) 685-6494

Trilogy at Monarch Dunes
Arroyo Grande, California
(near Nipomo, along the Central California coast)
(Home prices start in the mid $500's)
(800) 685-6494

Trilogy at Glen Ivy
Corona, California
(Home prices start in the high $300's; development fully built out)
(951) 808-5131

Trilogy at the Polo Club
Indio, California
(Home prices starting from the high $200's)
(in the Coachella Valley east of Palm Springs)

Trilogy Enclave at Rice Ranch
Orcutt, California
(Home prices start in the mid $400's)
(Santa Barbara County)

What People Like About Trilogy Retirement Communities

My husband and I considered purchasing a home at the Trilogy retirement community in Glen Ivy about ten years ago.  We loved the development, but we were still in our 50's and it was too far from where my husband worked at the time.  The community has a golf course and an indoor swimming pool, surrounded by an indoor track, an outdoor pool, tennis courts, exercise facilities, walking trails and more.  With the large, attractive clubhouse and well-designed homes, nestled next to the Cleveland National Forest, we found the community and the homes very appealing.

Since then, Trilogy has improved their home designs with new options that include solar systems that will dramatically reduce your electricity expenses.  The solar systems are rolled into your purchase price.  You can also customize your home with your choice of kitchen counters and cabinets, flooring, lighting and optional design features in the floor plans. All the new communities offer swimming pools, well designed homes, gorgeous club houses and a wide variety of amenities that are sure to appeal to the over 55 age group, including classes, gyms, tennis courts and, in some cases, golf courses.

There are additional Trilogy retirement communities in the states of Washington, Nevada, Florida, North Carolina, Virginia and Arizona.  This gives retirees a wide variety of options on both coasts.

If you are interested in additional ideas about where to retire in the United States or overseas, financial planning, common medical issues as we age, or changing family relationships, use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  Photo of golf course taken by author, Deborah-Diane; all rights reserved.

Senior Discounts You Will Love!

Let's be honest ... there aren't a whole lot of benefits to getting older.  However, one benefit we should all take advantage of are the senior discounts.  Starting at age 50, you will start to be eligible for certain senior price breaks at a number of businesses.  More special deals kick in at age 60 and there are an even larger range of discounts available by the time you are 65.

In addition to the ones listed below, make sure you are aware of any special discounts in your area ... free classes, reduced price meals at local restaurants, special days at museums, etc.

It is important to know, however, that in general you must ASK in order to get your senior discount.  The businesses are happy to forget about them, unless you ask.

Senior Discounts You Can Use

 

AARP Discounts - Once you turn 50, be sure to sign up for AARP.  Your membership will only cost about $16 a year, and it will make you eligible for a whole range of discounts including hotels deals, especially at Best Western and La Quinta, as well as other travel packages.  Restaurant discounts at Landry's, McCormick & Schmick, Rainforest Cafe, Outback Steakhouse, Denny's, and other places.  Sears Department Stores offer a discount on their Road Handler tires.  You can also get reduced prices on prescription drugs that are not covered by your medical insurance.  The AARP magazine and website will provide you with more information about the deals that are available.  However, my husband and I simply ask about AARP discounts everywhere we go, especially when we are traveling, going into museums, or visiting tourist attractions.

Restaurant Discounts - In addition to the restaurants that offer a discount through AARP, there are other restaurants that offer a price reduction on their own, including Arby's, Boston Market, Chili's, Subway and Wendy's.  However, as mentioned earlier, you have to ask for them.  Some businesses will require you to register for the discounts before you can get them.

Special Deals on Travel - Southwest Airlines, American Airlines, and US Airways all offer discounts for people over the age of 65.  However, my husband has pointed out that it is smart to see if you are able to get an even lower fare by using discount ticket sites.  He has found that often the senior prices are not the best deals.  Dollar Rent-a-Car offers discounts to seniors, whether they are members of AARP or not. Amtrak also offers a 15% price reduction on the lowest available rail fare for people over the age of 62. Bus service discounts are also available in many cities.  Lower prices on cruises are also available.  Make sure you check out Royal Caribbean and Carnival Cruise Lines for their special offers.

Department Store Price Breaks - Many stores offer senior discounts, but again you have to ask for them.  Sometimes the deals are only available on certain days.  For example, Kohl's has lower prices on Wednesdays for customers who are 55 and over.  Ross has the same deal on Tuesday's.  Belk offers 15% off on the first Tuesday of each month.  Banana Republic offers 10% off all the time for customers over the age of 50.

Lower Prices at Drug Store  - Rite Aid offers 20% off your entire purchase on the first Wednesday of every month, if you are over the age of 65.  I keep a list of items I buy regularly, such as vitamins and shampoo, and pick those items up on that day each month.  You have to register your Rite Aid card in order to get the price break, and then it is automatically entered when you check out on that day of the month.  In addition, I qualify for Plenti points for purchases that I make at Rite Aid and Macy's, as well as for my AT&T phone bill.  These points add up quickly and can easily be converted to cash that I can spend in those stores.  Every little bit counts!

Movie Theater Discounts - Most movie chains offer a special price for seniors.  Our local theater not only has a normal senior discount that is available all the time, but on Wednesdays and Thursdays the price is even lower. 

More Price Reductions for Seniors - The senior discounts that are available are constantly changing.  For a current list, be sure to check out The Senior List website for a current list.  Look for the tab at the top of the page.  You might be surprised what you will find.

You will also get more helpful ideas from this this list of Senior Discounts for People Over 50 that was listed on the Mogul website.

Looking for more helpful retirement information?  Use the tabs or pull down list at the top of this article to find links to hundreds of additional helpful articles on where to retire, financial planning, medical issues, and changing family values.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  www.morguefile.com