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Social Security Benefits to Increase by 1.6% in 2020

AAFCPAs Wealth Management would like to make clients aware that the Social Security Administration announced today that Social Security and Supplemental Security Income (SSI) benefits for nearly 69 million Americans will increase 1.6 percent in 2020. Cost-of-living adjustments (COLA) have averaged 1.4 percent in the past decade.

The 1.6 percent adjustment will begin in January 2020. Increased payments to SSI beneficiaries will begin on December 31, 2019.

The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $137,700. The earnings limit for workers who are younger than “full” retirement age (age 66 for people born in 1943 through 1954) will increase to $18,240. The earnings limit for people turning 66 in 2020 will increase to $48,600. There is no limit on earnings for workers who are “full” retirement age or older for the entire year.

If you have questions, please contact: Jonathan Bloom, CFP®, AIF® at 774.512.4081, jbloom@nullwealth.aafcpa.com, or your AAFCPAs Wealth Advisor.

About the Author

Jonathan Bloom
Jonathan is an experienced and passionate Investment Advisor and Financial Planner with a commitment to independent client-centric advice.  He has proven success earning trust advising nonprofits & foundations, high-net-worth individuals and retirement plan clients. He provides objective, customized solutions and a comprehensive approach to wealth management, which includes: estate, tax, retirement, insurance, college and cash flow planning. Jonathan appreciates that clients place trust in our team, and that each client is unique. In response, he works diligently to understand each client’s individual needs, life circumstances, priorities, and goals and then sets clear financial objectives and a plan to achieve them.