As 2019 winds to a close, many Americans will soon see a bump in their monthly income.
Social Security and Supplemental Security Income Benefits for nearly 69 million Americans are set to increase by 1.6% in 2020 due to cost of living increase.
Jack Meyer with the Social Security Administration office in Springfield says that for some, that increase might show up a day early.
“The 2020 cost of living adjustment is just around the corner for most and that is actually going to hit at the end of this month for some, because it’s applicable with the payments for Social Security that will be paid in January, and for S.S.I. that will be paid on 12/31 of 2019. Because S.S.I. payments are due the first day of January and since the first day of January is New Year’s Day, those payments will come out on New Year’s Eve. So for your S.S.I. payment that you get on 12/31 of 2019 or your Social Security payment that you get sometime in January, you should see that new cost of living adjustment which is 1.6% for next year.”
Meyer says that sometimes people wonder where the figures for the cost of living increase come from and that it is actually part of Social Security law.
“It is an automatic increase which occurs when the cost of living, as is measured by the Department of Labor’s Consumer Price Index for urban and clerical wage earners rises. So when there is an increase in the C.P.I.W., the percentage increase is the percentage for the C.O.L.A.
The comparison point is the third quarter of the last year there was a raise, so the third quarter is July through September, compared to the third quarter of this year. So when you look at what the 2020 C.O.L.A. is, it is because there was a 1.6% increase in average C.P.I.W. from the third quarter of 2018, and the third quarter of 2019.”
But as the benefit amount gets an increase in 2020, Medicare Part B premiums will see an increase as well. Meyer says though most will see their premiums go up, they still should see an increased amount on their checks compared to 2019.
“Your Medicare Part B premium is deducted from your monthly Social Security payment, if you get a monthly Social Security payment and you are enrolled in medicare. Medicare has announced what the standard part B rate is going to be in 2020, and that is going to be $144.60 and that is up some from 2019 because it was $135.50 this year, so when you do see that increase in your Social Security benefit, that will be offset to an extent by the increase in the Medicare Part B premium. But for most folks, the 1.6% increase in the Social Security benefit will be more than the increase in your Medicare Part B premium.”
Meyer says most people should still see the increase next year, depending on what their overall benefit amount is.
Social Security recipients should have already received a letter from the social Security Administration informing them of how much their cost of living increase will be in 2020.
Meyer says that those who have already set up a My Social Security account for themselves on the socialsecurity.gov website, will be able to view their cost of living adjustment and Medicare premium amounts in the message center of the account.
To find out more information about benefits for 2020 or to set up a My Social Security Account, log on to socialsecurity.gov