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Social Security Benefits to increase 5.8% in 2009

The Social Security Administration will be increasing the Social Security benefit by 5.8% for 2009. This benefit increase represents the annual Cost of Living Adjustment (COLA), and is the largest increase since 1982. The monthly benefit for retired workers will increase by $74/month to $1,153/month.

This increase reflects the larger than normal increases in cost of living expenses from the 3rd quarter of 2007 to 3rd quarter of 2008 in food, gas and other basic necessities.

For seniors, this increase follows other good news in September that Medicare Part B monthly premiums will remain unchanged at $96.40/month - the first year since 2000 that there was not an increase in the standard Medicare Part B premium.

Check out the 2009 Medicare premiums and coinsurance rates to see how you may be affected by any other increases in Part A premium and deductibles.