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When it comes to forecasting your social security benefits in 2020, there is good news and bad news.
Your social security checks are about to develop next year; however, the annual increase is not likely to be as large as it would have been in 2019.
This is reported by the Senior Citizens League, which released Thursday its latest estimate of the adjustment to the cost of living of social security for 2020.
The non-partisan group estimates that beneficiaries will benefit from an increase of 1.6% in 2020, compared with 2.8% in 2019.
This would increase the average benefit of retirees by $ 1,460 from about $ 23.40 per month, up from $ 40.90 this year.
The Social Security Administration 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 employees and urban office workers, or CPI-W, until the third quarter.
The Senior Citizens League bases its estimates on data until August and has a register of accurate forecasts.
An increase of 1.6% would be the lowest since 2017, said the organization. Adjustments to the cost of living of social security have averaged 1.4% over the last decade.
Worse still, Social Security benefits have lost a third of their purchasing power since 2000, according to the calculations of the Senior Citizens League.
According to estimates by Medicare administrators, Medicare Part B premiums are expected to reach $ 144.30 per month in 2020, up from $ 135.50 this year.
As a result, people who receive the lowest social security benefits – $ 550 or less – may not see any increase in their social security checks because of these higher premiums, the Senior Citizens League said.
However, there is a law, called the Blocking Clause, that prevents social security benefits from being reduced by higher Medicare Part B premiums. This affects about 70% of Medicare beneficiaries, according to The Senior Citizens. League.
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