Social Security Cost of Living Raises Will be Smaller Next Year
If you are disabled and receive Social Security or Supplemental Security Income benefits, you will get more money next year, but the increase will not be as big as it was this year. The 2019 Cost-of-Living Adjustment (COLA) resulted in a 2.8 % increase, the largest increase since 2012, but you won’t get anything like that in 2020.
Social Security laws stipulate that the amount of money paid to Americans who receive Social Security benefits (old age and disability) must be adjusted annually for inflation. The Social Security Administration uses one of the measures of the Consumer Price Index (CPI) to gauge the inflation level during the third quarter of the year (July, August and September). The inflation rate has been low this year, so the 2020 COLA will be a slim 1.6% increase.
The change will take effect beginning December 31 for the more than 10 million Social Security disability beneficiaries nationwide and in January 2020 for more than 63 million Americans receiving Social Security old age benefits. The average increase for disability beneficiaries will be about $19.79 per month. However, for many disabled Americans, part of the increase will be gobbled up by increases in the Medicare Part B premiums. The Centers for Medicare and Medicaid Services announced last month that premiums will rise by $9.10 a month for about 70% of those on Medicare.
