Social Security 2020

2020 Social Security saw a 1.6% cost-of-living increase for the nearly 69 million Social Security and Supplemental Security Income (SSI) beneficiaries. For an average retiree who receives monthly social security benefits of $1,460, that adds up to an additional $23.40 a month.

See our COLA increase watch for more on the COLA and 2021 social security increase. Will the Coronavirus have an impact?

#BREAKING! Nearly 69 million Americans will get a 1.6% increase in monthly #SocialSecurity and #SSI benefits in 2020. Check #SocialSecurityMatters later this morning for more information: https://t.co/BDNvNs2Opi #COLA #2020COLA

— Social Security (@SocialSecurity) October 10, 2019

“The 1.6 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 63 million Social Security beneficiaries in January 2020. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2019. ” ~ SSA statement

The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $137,700 from $132,900, a 3.61% increase.

2020 Social Security and SSI Effective & Payment Dates:

• Social Security benefits are effective beginning with December 2019 benefits, which are payable in January 2020.
• Federal SSI payment levels will begin on December 30, 2019.

To calculate the 2020 COLA (Cost-of-Living Adjustments) increase, if any, the average of the indices of July, August, and September 2019 are be compared with the 2018 3rd quarter average. The end result is the percentage by which Social Security benefits are adjusted. This is referred to as the Cost of Living Adjustment (COLA).

Third quarter 2018 was used for the three month average comparison as the law dictates that the SSA use the same three months of “the last year in which COLA became effective”.

2019 Social Security and SSI Effective & Payment Dates:

The 2019 Social Security saw a 2.8% cost-of-living increase, the most substantial increase since 2011. A 2.8% increase is about $67 a month or $1,461 to the average recipient.

• Social Security benefits are effective beginning with December 2018 benefits, which are payable in January 2019.
• Federal SSI payment levels will begin on December 28, 2018.

To calculate the 2019 COLA (Cost-of-Living Adjustments) increase, if any, the average of the indices of July, August, and September 2018 are be compared with the 2017 3rd quarter average. The end result is the percentage by which Social Security benefits are adjusted. This is referred to as the Cost of Living Adjustment (COLA).