Social Security payments set for a modest increase in 2020

The rise is less than it's been in the past two years, but more than in other years since 2010.
Publish date:

Retirees getting Social Security checks can expect to see their payments increase by 1.6 percent next year.

The Social Security Administration announced the modest increase in payments on Thursday, which follows the cost-of-living adjustment (COLA) for 2020.

The amount is less of an increase than the 2.8 percent bump last year, and the 2 percent in 2018, but at least it's more than the 0 percent increase in 2010, 2011 and 2016.

On average, Social Security payments have risen 1.4 percent annually over the past 10 years.

It means that the average monthly payment to recipients will rise by $24-per-month, or $288 a year, per the Social Security Administration.

There are expected to be 63 million Social Security beneficiaries in the U.S. by Jan. 2020.

Screen Shot 2019-10-10 at 8.35.29 AM

CNBC reports that the cost of living adjustment is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers from the Bureau of Labor Statistics.

The most recent annual inflation rate from the Bureau of Labor Statistics was 1.7 percent for the 12 months up till the end of September 2019.

If retirees receive Social Security benefits as their sole source of income, they won't have to pay any taxes on it, as it will be below the $25,000 individual and $32,000 couple filing jointly threshold for income taxes.

If they have other sources of income that brings them over these thresholds however, this will make a portion of their Social Security liable for tax, with CNBC recommending they increase their voluntary withholding from other sources of income in order to avoid a nasty shock on tax return filing day.

Sign up: Follow Bring Me The News on LinkedIn

Next Up

Governor Tim Walz

Governor Walz to announce 'sweeping' education plan Monday

The governor will address Minnesota at 2 p.m. Monday.

sun country

Sun Country adds 9 more flights out of MSP Airport

The new additions include large cities and popular outdoor destinations.

Zach Parise

Ghosts of Wild's past force split with Sharks

Brent Burns and Ryan Donato thwarted a comeback attempt by the Wild.

Avante Dickerson

Top-ranked recruit Avante Dickerson decommits from Gopher football

The four-star cornerback was the highest-rated recruit in Minnesota's 2021 class.

u.s. district court minnesota - federal court minneapolis

Limits on in-person court activity extended for 45 days

The statewide order extends current limitations through March 15.

D'Angelo Russell / Minnesota Timberwolves

The Timberwolves need more from D'Angelo Russell

The Wolves haven't gotten what they expected since making a blockbuster trade.

oct. 20 snow crash

Spinouts, crashes still happening after snow leaves MN roads a mess

The snow storm caused at least 208 crashes this weekend.


For The Week: Food tips and tricks to get you through the next 7 days

BMTN's food writer Lindsay Guentzel makes life easier for Minnesotans.

snow, plow

Here's how much snow fell in Saturday's storm in Minnesota

MSP Airport had the highest total as of 7 a.m. Sunday with 5.3 inches.


Proposed Centerpoint price hike would increase gas bills by 8.7%

The utility says the extra money would be used to invest in its pipeline system.

coronavirus, Iowa

Increasing clusters of COVID-19 traced to workplaces, social settings

As of Monday, 1,063 of the state's 2,158 ICU beds were occupied.

Screen Shot 2020-03-03 at 9.23.04 AM

Canceled in 2020, effort underway to secure future of steamboat Minnehaha

The boat has been operating on Lake Minnetonka for 24 years.

How the Federal Reserve's decision to raise interest rates affects you

It's the third hike since the financial crisis, and five more are planned over the next two years.

Minnesota's businesses prepare for minimum wage increase on Jan. 1

It will rise to $10 for large employers, and $8.15 for small.

Valleyfair increases security after fight-fueled evacuation

The amusement park in Shakopee was evacuated on Saturday night.

Social Security cuts would hit rural areas hardest

In Minnesota's metropolitan counties 14 percent of residents receive Social Security benefits. In rural counties it's more than 23 percent.