Advertisement
social security

Next Social Security Raise Likely Meager

But there could be an increase if higher tariffs on Chinese imports or a spike in gas prices drive up inflation in the third quarter.

An inflation rate of less than 2% may be good news for shoppers, but it’s worrisome for seniors who rely on Social Security for a large part of their retirement income.

The Senior Citizens League, an advocacy group, projects that the annual cost-of-living adjustment for benefits in 2020 will be 1.7%, or about $24 a month for the average monthly payout of $1,420.

Advertisement - Article continues below

The League’s projections are based on the Consumer Price Index through April, says Mary Johnson, the organization’s Social Security and Medicare policy analyst. The COLA could increase if higher tariffs on Chinese imports or a spike in gas prices drive up inflation in the third quarter. Social Security will announce the official increase for 2020 in October.

Some lawmakers and advocates for seniors want to tie the COLA to a “seniors” index that gives more weight to the cost of health care. One roadblock in the way of that change is Social Security’s precarious financial condition. Social Security trustees project that its costs will exceed its income next year. That means the program will need to dip into its nearly $3 trillion trust fund. If Congress doesn’t act to shore up the fund, it will be depleted by 2035, forcing Social Security to reduce benefits to about 80%—and eventually 75%—of promised benefits.

Advertisement

Most Popular

12 Tax Deadlines for July 15 (It's Not Just the Due Date for Your Tax Return)
tax deadline

12 Tax Deadlines for July 15 (It's Not Just the Due Date for Your Tax Return)

Between due dates for IRA or HSA contributions, paying estimated taxes and other deadlines, there's more to do by July 15 than just filing your federa…
July 10, 2020
65 Best Dividend Stocks You Can Count On
stocks

65 Best Dividend Stocks You Can Count On

These 65 Dividend Aristocrats are an elite group of dividend stocks that have reliably increased their annual payouts every year for at least a quarte…
July 8, 2020
Tax Changes and Key Amounts for the 2020 Tax Year
tax law

Tax Changes and Key Amounts for the 2020 Tax Year

Americans are facing a long list of tax changes for the 2020 tax year...and it's never too early to start thinking about next year's return.
June 22, 2020

Recommended

14 Social Security Tasks You Can Do Online
retirement

14 Social Security Tasks You Can Do Online

Why visit a government office to get your Social Security business done? You can do much of that online.
June 26, 2020
Did You Know You Can Start, Stop and Then Restart Social Security?
social security

Did You Know You Can Start, Stop and Then Restart Social Security?

Check out Social Security claiming strategies (some familiar and others you may never have heard of) that could help those in or near retirement durin…
June 29, 2020
Will Your Stimulus Check Increase the Tax on Your Social Security Benefits?
income tax

Will Your Stimulus Check Increase the Tax on Your Social Security Benefits?

It comes down to whether your stimulus check will boost your "provisional income."
June 18, 2020