32ºF

Social Security announces benefit increase for 2020

Nearly 69 million Americans will see a Social Security benefit increase in 2020.

The increase will be 1.6 percent, the Social Security Administration announced.

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.

(Note: some people receive both Social Security and SSI benefits). 

The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor's Bureau of Labor Statistics.

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $137,700 from $132,900. 

Social Security and SSI beneficiaries are normally notified by mail in early December about their new benefit amount.