Asking your boss for a raise could be considered one of the top anxiety-inducing conversations in the workplace. A 2023 LinkedIn survey of over 20,000 U.S. professionals proves the point:
— Only 26% of U.S. professionals (of all ages) intend to seek a pay bump in the next six months.
— For Gen X, 26% of men and 25% of women said they plan to ask for a raise.
— Among baby boomers, fewer than 20% of both males and females said they will be raise-hunting.
But there is good news… you will not have to ask for a raise from Uncle Sam for your Social Security paycheck in 2023! You will be receiving an 3.2% raise from Social Security starting in January 2024.
History of Social Security Cost-Of-Living Adjustment (COLA)
Each year, many of our clients eagerly await their cost-of-living adjustment (COLA) in the hopes of getting a higher monthly paycheck. Since 1975, retirees have received a COLA to help their benefits keep up with inflation. But in recent years, those COLA's have been notably stingy or non-existent.
It is also interesting to note that the government does not factor food or energy into the COLA calculation — I am still looking for that person who does not consume food or energy in their daily life. But Uncle Sam didn't ask for my opinion!
Data Source: Social Security Administration
Will I really get a raise?
Before you plan that beach vacation with your “raise,” let's remember that some retirees do not see their COLAs in full due to the increase in Medicare Part B premiums.
Medicare Part B, which covers doctor visits, diagnostics, and preventive care is not “free” like Part A. According to the Centers for Medicare and Medicaid Services, standard Part B premiums will increase by 5.9% in 2024. For many of our clients, these Part B premium payments are deducted directly from their Social Security benefit checks. So while it's always nice to receive a bump in pay from Uncle Sam, the increase in Medicare premiums will absorb a disproportionate share of this "raise."
Do you have a strategy?
Reviewing your Social Security filing strategy can be a daunting task. There are over 80 ways for a married couple to file for Social Security benefits. Before you try to decipher these complex government benefit programs alone, please give us a call. We would be happy to help.
About the Author
Matt Price serves as a Partner and Managing Director for The Price Group of Steward Partners. He resides in Houston with his wife, Emily, their four children and "Fisher" the family golden retriever. Matt studied at the University of Pennsylvania – Wharton School of Business for his Certified Investment Management Analyst (CIMA®) designation after receiving his undergraduate degree from the University of Tennessee - Knoxville. Over the past 12 years, Matt has helped families make high quality, common sense decisions regarding their wealth and their legacy. Matt firmly believes everyone needs a wealth coach!
Content Is Nothing Without Context
Are you looking for a weekly financial market commentary that provides context? Click here to sign up for our weekly newsletter. We are helping make the complex simple.
The views expressed herein are those of the author and do not necessarily reflect the views of Steward Partners or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.
Securities and investment advisory services offered through Steward Partners Investment Solutions, LLC, registered broker/dealer, member FINRA/SIPC, and SEC registered investment adviser. Investment Advisory Services may also be offered through Steward Partners Investment Advisory, LLC, an SEC registered investment adviser. Steward Partners Investment Solutions, LLC, Steward Partners Investment Advisory, LLC, and Steward Partners Global Advisory, LLC are affiliates and separately operated. The Price Group is a team at Steward Partners.
Please do not use e-mail for requests to buy or sell a security as they cannot be honored. If you have received this communication in error, please notify the sender immediately. Steward Partners reserves the right, to the extent required and/or permitted by applicable law, to archive and monitor all electronic communications (including, but not limited to, emails, instant messages, text messages and social media posts), and reproduce electronic communications to state, federal or other regulatory agencies.
Securities, insurance products and investment advisory services are: • NOT FDIC Insured • NOT Bank Guaranteed • and MAY Go Down In Value.
AdTrax 4766787.93 Exp 1/24