Social Security Increases Benefits by 1.6% for 2020
Nearly 69 million Americans will see the increase in their payments beginning in January.
The Social Security Administration has announced a cost of living adjustment (COLA) to recipients’ monthly Social Security and Supplemental Security Income (SSI) benefits. Nearly 69 million Americans will see the 1.6% increase in their payments beginning in January of 2020. The increase – moderate, in comparison to last year’s 2.8% adjustment – is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers and was put in place to ensure the purchasing power of these benefits isn’t eroded by inflation.
According to the Social Security Administration, on average, retired workers currently collect $1,479 a month in Social Security payments, or roughly $17,748 a year. The 1.6% COLA will add about $24 a month to those payments, or $288 for the year.
Keep in mind, all federal benefits must be direct deposited. So if you haven’t already started receiving benefits, you need to establish electronic transfers to your bank or financial institution. Contact your financial advisor for more information.
Source: Social Security Administration