Home / US / Social security checks could be raised by 1.6% next year

Social security checks could be raised by 1.6% next year

When it comes to forecasting your social security benefits for 2020, there is good news and bad news.

Their social security checks are expected to grow in the next year. However, the annual increase is not expected to be as high as in 2019.

This is from the senior league, which published its latest estimate for the adjustment of the cost of social security for 2020 on Thursday. [19659002] The nonpartisan group estimates that beneficiaries will increase by 1.6% in 2020, after a rise of 2.8% in 2019.

This would increase the average pensioner benefit from $ 1

,460 by 23, Raise $ 40 a month from $ 40.90 this year.

The Social Security Agency is expected to announce the cost of living adjustment for 2020 in October.

The adjustment is calculated on the basis of consumer price index data for city earners and office workers or VPI-W, up to the third quarter.

The Senior League bases its estimate on data until August and has a record of accurate predictions.

An increase of 1.6% would be the lowest since 2017, the organization said. Adjustments to the cost of social security have averaged 1.4% over the past decade.

What is worse, according to calculations of the senior league, since 2000 social security benefits have lost a third of their purchasing power.

More from Personal Finance:
Law May Extend Social Security's Paying Capacity for the Rest of the Century
The Best Age to Claim Social Security Benefits
Social security payments may cost less than a cup of coffee

According to Medicare trustee estimates, Medicare Part B premia in 2020 is expected to increase from $ 135.50 this year to $ 144.30 per month.

Persons with the lowest social security benefits ($ 550 or less) may not receive bonuses According to The Senior Citizens League, social security checks increase as a result of these higher premiums.

However, there is a law called a disclaimer that prevents social security benefits. It should be kept from being reduced by higher Medicare Part B premiums. This is according to the senior league for about 70% of Medicare beneficiaries.

Source link