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Social Security checks can get a 1.6% halt next year

When it comes to forecasting your social security benefits in 2020, there is good news and bad news.

Your social security checks will grow next year; however, the annual increase is unlikely to be as much as you received in 2019.

It is according to The Senior Citizens League, who on Thursday released their latest estimate for Social Security's cost of living adjustment for 2020. [19659002] The nonpartisan group estimates that the beneficiaries will to get a 1.6% increase in 2020, a decrease from a 2.8% increase in 2019.

It would raise the average pension cost of $ 1

,460 by about $ 23.40 a month compared to $ 40.90 this year.

The Social Administration is expected to announce the cost of living adjustment for 2020 in October.

The adjustment is calculated based on data from the Consumer Price Index for employees and workers in city wages or CPI-W, through the third quarter.

The Senior Citizens League bases its estimate on data through August and has a record of accurate predictions.

An increase of 1.6% would be the lowest since 2017, the organization said. Living costs for living expenses have averaged 1.4% over the past decade.

Worse, social security benefits have lost a third of their purchasing power since 2000, according to Senior Citizens League estimates.

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Fixing social insurance may cost less than a cup of coffee [19659] At the same time, Medicare Part B premiums are projected to increase to $ 144.30 per month in 2020 from $ 135.50 this year, according to estimates by Medicare administrators.

Consequently, individuals receiving the lowest social security benefits – $ 550 or less – may not see any increase in their social security checks due to the higher premiums, The Senior Citizens League said.

However, there is a law, called the harmless provision, that prevents the social security benefit it will reduce with higher Medicare Part B premiums. This applies to about 70% of Medicare beneficiaries, according to The Senior Citizens League.

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