(FinancialHealth.net) – Every year, the Social Security Administration increases recipients’ pay. In 2019, the cost-of-living adjustment (COLA) went up 2.8%, the biggest increase since 2012. The 2020 increase is not nearly as generous, and some people may not see much of it at all.
Earlier this month, the 1.6% COLA increase went into effect. People who receive average retirement benefits (not full retirement) saw about $24 added to their monthly check. The benefits increase was 43% less than what they received in 2019.
Unfortunately, much of the increase was eaten up by an increase in Medicare. The health insurance program for retirees saw a $9.10 hike to standard premiums for Part B plans.
That’s not the worst news. According to MarketWatch, the cost-of-living index rose by 2.3% in 2019. The index measures how much people pay for clothes, food, transportation, etc.
Recipients of Social Security are right to be nervous. The most recent increase wasn’t large enough to cover the cost of living. Couple that with the fact that Social Security benefits have lost one-third of their buying power since 2000, and things don’t look great for retirees who are dependent on this money to survive.
~Here’s to Your Financial Health!
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