WASHINGTON (AP) — Feeling pretty comfortable in retirement?
Here's something to think about: President Barack Obama's budget would raise Medicare premiums for individual retirees making more than $85,000 and couples making more than $170,000.
It would also freeze the indexing for inflation of those income thresholds, so eventually 1 in 4 retirees will have to pay more. Right now only about 1 in 20 pays the higher rate.
The higher premiums surprised a retired city worker from Albuquerque, Sheila Pugach.
She says she's paying about $500 a year more in premiums for Medicare outpatient and drug coverage, all because required withdrawals from her retirement savings bumped her into a higher income bracket.
Republicans like Obama's idea, so Pugach could soon have more company.
WASHINGTON (AP) - President Barack Obama is proposing cuts to Social Security as an attempt to compromise with Republicans on the budget.
A senior administration official says the budget Obama will offer to Congress next Wednesday would reduce the deficit by $1.8 trillion over 10 years. It includes a revised inflation adjustment called "chained CPI" that would curb cost-of-living increases in Social Security and other benefit programs.
The senior administration official stressed it is not the president's preferred approach but a compromise proposal to try to reach a long-term budget deal. Obama first made the offer to House Speaker John Boehner last year.
The official spoke on a condition of anonymity since the budget has yet to be released. Technically, the administration actually would be limiting the growth of Social Security.