Tags: social | security | benefits | senior | citizens

Social Security Benefits Seen Rising 1.6% in 2020

Social Security Benefits Seen Rising 1.6% in 2020
(Georgesheldon/Dreamstime)

By    |   Friday, 13 September 2019 11:37 AM

Your Social Security checks reportedly are poised to grow next year; however, the annual increase likely won’t be as much as you got in 2019.

The Senior Citizens League on Thursday estimated that Social Security beneficiaries will get a 1.6% cost-of-living boost in 2020, down from a 2.8% increase in 2019.

The nonpartisan group said that would raise the average retiree benefit of $1,460 by about $23.40 per month, compared with $40.90 this year.

The Social Security Administration is expected to officially announce its cost-of-living adjustment in October.

The adjustment is calculated based on data from the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, through the third quarter.

The Senior Citizens League bases its estimate on data through August, and has a record of accurate predictions, CNBC.com said.

The Social Security program is run by the U.S. government and distributes benefits based on a portion of wages an individual earns over their working years once they retire or leave the workforce due to a disability.

A 1.6% increase would be the lowest since 2017, the organization said. Social Security cost-of-living adjustments have averaged 1.4% in the past decade.

What’s worse, Social Security benefits have lost one-third of their buying power since 2000, according to The Senior Citizens League’s calculations.

Meanwhile, U.S. Senator Elizabeth Warren said on Thursday that if elected to the White House, she would expand Social Security, the retirement program administered by the federal government, by increasing benefits by $200 a month for every current and future beneficiary.

The Massachusetts senator, one of 20 Democrats vying to take on Republican President Donald Trump in November 2020, said she would pay for the Social Security expansion by “asking the top 2% of families to contribute their fair share,” Reuters explained.

“A generation of stagnant wages and rising costs for basics like housing, health care, education, and child care have squeezed family budgets,” Warren wrote in a post on the website Medium.

Warren said that stagnant wages have contributed to Social Security benefits that are too low to cover retirees’ living expenses. In 2019, the average Social Security benefit was $1,354 a month, or $16,248 a year, roughly equivalent to the level of income that would put a household of two at the government-determined poverty line.

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Your Social Security checks reportedly are poised to grow next year; however, the annual increase likely won’t be as much as you got in 2019. The Senior Citizens League on Thursday estimated that beneficiaries will get a 1.6% cost-of-living boost in 2020, down from a 2.8% increase in 2019.
social, security, benefits, senior, citizens
381
2019-37-13
Friday, 13 September 2019 11:37 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved