Social Security, SSI benefits to increase for 69 million Americans in 2020
WASHINGTON, D.C. (WENY) – The Social Security Administration announced today that nearly 69 million Americans' Social Security and Supplemental Security Income (SSI) benefits will increase 1.6% in 2020.
Officials say the increase, calling the cost-of-living adjustment (COLA), will begin with benefits payable to more than 63 million beneficiaries in January. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2019. Officials say some people receive both Social Security and SSI.
According to the Social Security Administration, the Social Security Act ties the annual COLA to the increase in the Consumer Price Index which is determined by the Department of Labor's Bureau of Labor Statistics.
Officials say some other adjustments taking 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 will typically be notified by mail in early December about their new benefit amount. Additionally, most people who receive Social Security payments will be able to view their COLA notice online through their “My Social Security” account. That can be accessed online at www.socialsecurity.gov/myaccount.
Officials say 2020 Medicare changes, when announced, will be available at www.medicare.gov. For Social Security beneficiaries receiving receiving Medicare, officials say Social Security will not be able to compute their new benefit amount until after the Medicare premium amounts for 2020 are announced.
Final 2020 benefit amounts will be given to beneficiaries in December through the mailed COLA notice and “My Social Security's” message center.
To read more about how the COLA is calculated, click here.