Social Security & Medicare Basics

Social Security payments are going up by 2.5% this year, thanks to the annual cost-of-living adjustment (COLA).

That means if you receive $2,000 a month, you’ll get about $50 more each month.

A reminder: the COLA helps protect you from inflation—but it may not fully cover every increase in living costs.

If you’re still working, this means earnings above that cap won’t increase your Social Security tax contributions (but may impact benefit calculations).

Still important: the more “work credits” you’ve earned, the stronger your benefit base.

While this doesn’t mean an immediate cut, it highlights why planning for retirement income beyond Social Security is wise.

For your audience: Encourage backup plans, not just reliance on one source.

For older adults: Make sure you have an online “my SSA” account set up (or help from a trusted adult) so you can view your statement, estimate future benefits, and correct any inaccuracies.

Tip: Keep your personal information secure; phishing scams often target older adults pretending to be SSA.

Part A (Hospital Insurance): Usually “premium-free” if you or your spouse paid Medicare taxes for about 10 years. 

Part B (Medical Insurance): Covers doctor visits, outpatient care, some preventive services. In 2025 the standard premium will be $185/month (up from ~$174.70 in 2024) and the annual deductible is $257. 

Part D (Prescription Drug Coverage): Offers optional drug coverage; for 2025 there is a new out-of-pocket cap of $2,000 for covered drugs under Part D. 

For many older adults, high drug costs were a major concern. With this cap in place, once you’ve spent up to $2,000 (on covered Part D drugs) in a year, you won’t pay more out-of-pocket for those covered drugs for the rest of the year. 

Note: This applies only to Part D covered drugs — not all medications, nor those covered under Part B.

Action: Encourage members of your list to review their drug plan each year (especially during open enrollment) to see if another plan offers better coverage for the drugs they take.

The standard “Open Enrollment Period” for changing Medicare health or drug plans for 2026 runs from October 15 to December 7, 2025. 

If you miss your initial or general enrollment periods you may face late-enrollment penalties or limited plan choices.

Tip: Even if you have “good enough” coverage, reviewing annually can help catch rising costs or better benefits.

Medicare generally does not cover long-term care (nursing home stays), most dental, vision or hearing aids. 

For your audience: Make sure they consider how they’ll cover these “gaps” — either via supplemental insurance (Medigap), savings or other benefits.

For Social Security: Log into your online SSA account; check your estimated benefit; if you’re still working, track how earnings will impact your future benefits.

For Medicare: Use the upcoming open enrollment period to compare plans, especially if your prescription drugs, doctors or budget changed in the last year.

Consider creating a checklist: annual premium/deductible changes, out-of-pocket maximums, coverage changes (especially drug plans), and whether your provider is in-network.

Plan for “what’s not covered” — long-term care, vision, dental. These often sneak up and create stress if unplanned for.

Encourage trusted help: Many older adults feel overwhelmed by insurance jargon. Pair them with a reliable advisor, licensed broker or trusted nonprofit resource to review options.