Social Security Benefits to Increase by 1.6% in 2020

Posted on October 10, 2019September 9, 2021

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, CFP®

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 high-net-worth individuals and retirement plan clients. He provides objective, customized solutions and a comprehensive approach to wealth management, which includes investment management, estate, tax, retirement, insurance, charitable giving, and cash flow planning.