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.

AAF Wealth Management is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where AAF Wealth Management and its representatives are properly licensed or exempt from licensure. This blog is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by AAF Wealth Management unless a client service agreement is in place.