SSA: Beneficiaries To Receive 1.6% COLA For 2020
The Social Security Administration (SSA) today announced the cost of living adjustment (COLA) for 2020 will be 1.6%. This is lower than two previous years when beneficiaries received an increase of 2.8% in 2018 and 2.0% in 2017. Click here for full list of COLAs since 1975.
The average monthly SSDI benefit will increase to $1,258 from $1,238, an increase of $20 (or $240 annually), according to SSA. The COLA is based on third-quarter results reported by the U.S. Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The amount of earnings subject to Social Security tax, or taxable maximum, will increase to $137,700 from $132,900 in 2020. The SSA outlines additional details in its Fact Sheet.
- Substantial gainful activity (SGA). The monthly threshold for non-blind individuals will increase to $1,260 per month from $1,220 per month. For blind workers, it will increase to $2,110 per month from $2,040 per month.
- Quarter of coverage. Earnings required for a quarter of coverage increases to $1,410 from $1,360. This refers to the amount of earnings required, per quarter, to receive insured status for retirement and disability benefits.
- Trial Work Period (TWP). The monthly TWP threshold increases to $910 per month from $880 per month.
The increase takes effect in January 2020 for more than 68 million Social Security beneficiaries.
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