New Year, New Rules: 6 Biggest Social Security Changes for 2020 (Part 1)
It’s hard to believe the New Year is already upon us. And at the end of every year the Social Security Administration releases a “Fact Sheet” providing updates for the coming year. These include changes to what beneficiaries will be paid, as well as adjustments to what is necessary to qualify for Social Security benefits.
For more than four decades our Long Beach Social Security lawyers have devoted their careers to helping disabled workers obtain the benefits they deserve. In this two part article our lawyers discuss the six biggest changes, to Social Security in 2020, including benefit increases.
Modest COLA “Raise” in Social Security Benefits
The cost-of-living adjustment (“COLA”) increase is the “raise” in benefits that Social Security recipients receive every year, designed to keep pace with inflation.
Since 1975, the SSA has used the Consumer Price Index for Urban Wage Earners and Clerical Workers to determine the COLA increase. If the third quarter of the current year (July through September) is compared higher than the previous year, then Social Security beneficiaries receive an increase in benefits equal to the percentage increase, rounded to the nearest tenth of a percent.
So, in 2020, Social Security beneficiaries will be receiving a 1.6% cost-of-living increase. This is about the average rate of annual increase in Social Security benefits over the past decade.
The 1.6% COLA increase will be about $24/month for the average retired worker, and about a $20 increase per month for the average disabled worker in Social Security Disability Benefits.
Increase in Social Security Full Retirement Age
Social Security full retirement age (“normal retirement age”) is set to increase in 2020, for only the 10th time since Social Security was instituted back in 1935. This is the age at which a retired worker can collect 100% of their monthly Social Security benefit.
The Social Security full retirement age increases by two months to 66 years and eight months, for individuals born in 1958. This means if they begin taking benefits at any point between age 62, and age 66 years and seven months, there will be a permanent reduction to their monthly benefit amount.
Income Limits on Social Security Disability Increase
Social Security Disability benefits provides a monthly income of 8.4 million dollars to disabled workers – and approximately 1.6 million dollars to the spouses and children of disabled workers.
Annually, the SSA updates the “monthly earning thresholds” – which is how much disabled workers can earn without losing their Social Security Disability benefits. In 2019, a (non-blind) Social Security Disability beneficiary could earn up to $1,220 a month without losing their monthly benefit. And blind Social Security Disability recipients could earn up to $2,040 without having their benefits terminated.
In 2020, non-blind Social Security Disability recipients can now earn up to $1,260 per month ($40 more a month) without losing benefits. And blind Social Security Disability beneficiaries can earn up to $2,110 per month ($70 more) before their SSDI benefits would be stopped.
CLICK HERE for Part 2 of Social Security Changes for 2020
Long Beach Social Security Lawyers
If you or a loved one is unable to work due to a disabling injury, medical condition or disease our skilled and experienced lawyers are here to help you get the maximum Social Security Disability benefits for which you qualify.
The Law Office of Cantrell Green is a group of highly qualified and experienced disability lawyers who have obtained millions of dollars in Social Security Disability benefits for thousands of clients in Long Beach, Orange County and the greater Los Angeles. Our lawyers care about every client, and fight tirelessly to obtain the benefits you deserve.
Long Beach Social Security Disability Lawyer Consultation: 800-964-8047