Social Security announced a 1.6% cost-of-living (COLA) adjustment for benefits in the year 2020. The question is, will recipients receive the full 1.6%?
Unfortunately, the answer is “no”, assuming that the Social Security beneficiary is also on Medicare. Medicare premiums are rising by 7% in the year 2020. The net result for Social Security beneficiaries after factoring these two numbers is only a 1.0% increase in their Social Security benefit.
Unfortunately, this is not uncommon from year-to-year, and so it’s important in your retirement planning to use extremely modest COLAs for Social Security.
Here is a recent article on Medicare increases that you’ll find interesting:
If you have any questions please feel free to contact me.