Will You See an Increase in Your Social Security Benefits in 2020?
A COLA or Cost-Of-Living Adjustment is in place for 2020.
Since 1975, Social Security’s general benefit increases have been based on increases in the cost of living, as measured by the Consumer Price Index. The SSA determined a 1.6% COLA on October 10, 2019.
In 2020, Social Security Disability (SSD), Supplemental Security Income (SSI) and Social Security Retirement recipients will see an increase in their monthly payments.
The reason for a COLA, is to make sure the recipients of these benefits are not affected by inflation. The Social Security Administration determines the COLA by using the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If there is no increase there will not be a COLA that year.
The 1.6% increase will raise benefits payable to more than 63 million Social Security beneficiaries in January 2020. More than 8 million SSI beneficiaries will begin receiving increased payments on December 31, 2019.
For individuals who are applying for SSD or SSI, there are important changes to SGA in 2020 as well. If you plan to work while applying for these benefits you may come across the word Substantial Gainful Activity (SGA). When someone is working, as an employee, while applying for benefits, Social Security sets a limit on not how much you can work, but on how much you can earn. In 2019, the monthly gross amount an individual could make was $1,220.00. In 2020, the amount will go up to $1,260.00 gross per month.
Although a COLA means recipient’s monthly payments will increase, it also means the cost of living has also increased. This means prices for goods and services have increased enough to affect/change in the cost of living.
Recipients of these benefits will be notified in December of 2019 of the changes to their benefits. You can find this information in the message center of your My Social Security Account. Letters will also be sent.
For a free legal consultation, call 412-661-1400
Source: Social Security Administration, “Cost-of-Living Adjustment (COLA) Information for 2020”