Social Security Benefits COLA 2020

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Learn about the 2020 Social Security benefits COLA increase and how it impacts your retirement planning. Stay informed with SafeMoney.com. While the exact details are still under wraps, Social Security recipients will be pleased to know that their benefits will be receiving a boost in 2020. Every October, the Social Security Administration releases information regarding Cost-of-Living Adjustments to benefits. This year is no exception. On October 10th, the SSA will be releasing official details regarding the Cost-of-Living Adjustment that applies to 2020 Social Security payouts. Expect a Social Security Benefits Boost of 1.6% According to The Senior Citizen League, a nonpartisan group focused on senior issues, Social Security recipients will likely receive a 1.6% boost to their payouts, starting in 2020. The league tracks data relating to how the SSA calculates its Cost-of-Living Adjustments. It bases their estimate on quarterly movements in the consumer price index for urban wage earners and clerical workers (CPI-W). Mary Johnson, TSCL’s Social Security policy analyst, mentions that this increase will be smaller than prior raises. She said that it “would raise an average retiree benefit by about $23.40 per month, a big drop from the $40.90 that people with that level of benefits received this year.” Effects of the COLA on Social Security Benefits How the Cost-Of-Living Adjustment will affect you will depend on what type of beneficiary you are. Retirees will receive benefits from Social Security that are based on their earnings records over their careers. Meanwhile, an aged widow, or a surviving spouse who is at least age 60, might collect survivor benefits based on their spouse’s record. More details of what the adjustment will look like for different types of beneficiaries will be available from the SSA in October. Smallest Cost-of-Living Adjustment in Three Years While this adjustment is a welcome increase to Social Security payouts, it’s also the smallest benefits boost in three years. Social Security beneficiaries received a 2.0% Cost-of-Living Adjustment in 2018 and a 2.8% Cost-of-Living Adjustment in 2019 . However, the substantial increase last year was due to a variety of factors. Rising costs of energy products and an increasing cost of hou