Social Security Benefits Cost-of-Living Adjustment for 2020

On October 10, the Social Security Administration (SSA) announced that recipients will be receiving a 1.60% raise in January 2020 in the form of a cost-of-living adjustment.  SSI recipients will receive their increased paychecks in December 2019.

The raise is lower than the last couple of years because inflation in the third quarter (July, August, and September) as measured by the Consumer Price Index was much lower than the corresponding third quarter in the previous year.

The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $137,700.

The earnings limit for workers who are younger than “full” retirement age (age 66 for people born in 1943 through 1954) will increase to $18,240. (We deduct $1 from benefits for each $2 earned over $18,240.)

The earnings limit for people turning 66 in 2020 will increase to $48,600. (We deduct $1 from benefits for each $3 earned over $48,600 until the month the worker turns age 66.)

There is no limit on earnings for workers who are “full” retirement age or older for the entire year.

Information about Medicare changes for 2020 have not yet been announced.

www.ssa.gov