Its been a tough year for many retirees on fixed incomes.
But its not all doom and gloom.
Its the biggest cost-of-living adjustment in four decades.
In December, you can see what your exact Social Security increase will be next year. Here’show to see it sooner online.Don’t Miss:Get Paid $225/Month While Watching Movie Previews
Thats equivalent to an extra $147 a month on average in your pocket.
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2.
The Part B deductible is also going down.
The combination of higher Social Security checks and lower Medicare Part B premiums is great news for retirees.
Most years, Social Security COLAs are eaten up by rising Medicare costs.
(Most retirees get their Part B premium deducted from their Social Security checks.)
That means more money in your pocket, which is welcome news during high inflation.
Retirement Account Contributions Limits Will Be Higher in 2023
Looking to retire in the next couple of years?
Youll get to enjoy increased retirement accountcontribution limitsin 2023.
These new limits are particularly beneficial for workers over age 50 looking to catch up on their retirement savings.
Many retirees want a safe place to park their cash.
Maybe youre selling your home to downsize and dont want to risk putting the proceeds in the stock market.
Or maybe youre takingrequired minimum distributionsfrom your retirement accounts and dont mind earning some interest with a safe investment.
Next year is shaping up to be a great year for saving money.
The interest rates onhigh-yield savings accounts,money market accountsandcertificates of depositare higher than theyve been in years.
In November, interest rates hit 3.75% to 4%.
Theres been talk about rates hitting 4.5% by spring.
That means you could earn even more money on your cash in 2023.
Consider this: Many high-yield savings accounts are boasting interest rates of 3% and higher.
Savers have another tool in their toolbox:Series I Bondsfrom the federal government.
I bonds are one of the safest investments you’re free to buy.
Theyre indexed for inflation and the variable rate resets every six months.
The new rate is good until May 1, 2023.
The overall rate is down, but theres a silver lining.
If you buy an I bond from theU.S.
I bonds can be a solid way for retirees to protect their cash against inflation.
you’ve got the option to purchase up to $10,000 of I bonds each calendar year.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
It sounds appealing right?
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