Social security benefits are going up again next year

  • Social security benefits are going up again next year

Social security benefits are going up again next year

For couples, the federal maximum will rise from $1,157 to $1,175 per month.

The change will take effect beginning December 31 for over 8 million SSI beneficiaries across the country and in January 2020 for more than 63 million Americans receiving Social Security.

The Social Security Administration announced Thursday that seniors would get a 1.6% raise for 2020, a tiny bump that won't keep pace with the rising cost of prescription drugs and other essentials.

The 2020 COLA for the nation's almost 69 million Social Security recipients is a bit higher than the 10-year average of 1.4%, but it's lower than the increase in the last two years - 2.8% in 2019 and 2.0% in 2018.

The 1.6% increase means that you will get an additional $16 for every $1,000 in government benefits you receive.

Military retirees and VA beneficiaries aren't the only ones who benefit from the COLA increase. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $137,700 from $132,900.

The Department of Labor determines the annual COLA by measuring the Consumer Price Index (CPI), which is a measurement of a broad sampling of the cost of consumer goods and expenses.

Older adults have an opportunity to potentially rein in some of their medical costs by comparing Medicare plans during this year's annual enrollment, which begins on October 15.

Last year, the COLA increase was 2.8%; in 2018, retirees saw a 2.0% increase.