PEORIA, Ill. — The Social Security Administration announced that Social Security and Supplemental Security Income (SSI) benefits will increase 1.6 percent in 2020.
Social Security and SSI benefits for almost 69 million Americans will increase. Based on the increase in the Consumer Price Index from the third quarter of 2018 through the third quarter of 2019, the beneficiaries will receive the 1.6% benefit increase.
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. 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.
Social Security and SSI beneficiaries are normally notified by mail in early December about their new benefit amount.
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 will increase to $137,700 from $132,900. Most people who receive Social Security payments will be able to view their COLA notice online through their my Social Security Message Center.
More information can be found at www.socialsecurity.gov/cola.