Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 69 million Americans (of which 160,000 are Brevard County residents) will increase 1.6 percent in 2020 beginning with the first payment in January.
The 1.6% raise amounts to about an extra $20 per year for the average Social Security recipient.
The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $137,700.
Social Security COLA Raise History
January 2016 — 0.0%
January 2017 — 0.3%
January 2018 — 2.0%
January 2019 — 2.8%
January 2020 — 1.6%
Social Security Earnings Limit Increases
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.