2020 COLA Announcement from Social Security

  • From USA Day: The 68 million Americans who rely on Social Security will receive a 1.6% bump in their benefits next year, the Social Security Administration announced Thursday. For an average retiree who gets a monthly check of $1,460, that adds up to an additional $23.40 a month, according to the Senior Citizens League, an advocacy group.

    “People are going to be dipping into savings,” says Mary Johnson, a policy consultant for the Senior Citizens League, arguing that the measure of inflation used to calculate benefits doesn’t accurately reflect the spending patterns of seniors. “And when they don’t have the savings, they might have to borrow the money.”

    About half of seniors rely on Social Security for at least half their income, and about a quarter depend on it for at least 90% of their income, AARP says.

  • Each month, Social Security sends out nearly 64 million benefit checks, most of which wind up in the hands of retired and disabled workers. More than 3 out of 5 of these folks depend on their benefit to account for at least half of their monthly income, with at least one analysis finding that over 15 million retired workers are pulled out of poverty as a direct result of this guaranteed payout. Suffice it to say that Social Security is very well our nation’s most valuable social resource.



info also based on articles from Motley Fool and the Washington Post