On October 10, the Social Security Administration officially released the amount of their cost-of-living adjustment for 2020. Almost 70 million Americans will see their Social Security benefits rise by 1.6% next year.
While this raise is less than the 2.8% cost-of-living-adjustment for 2019, it’s still higher than the 1.4% average COLA that participants have received over the past decade. The Senior Citizens League was also spot on with its projection for Social Security next year.
Social Security, a Crucial Retirement Decision
Social Security is one of the best benefits that you can get for retirement. Your monthly payments are guaranteed by the full faith and credit of the U.S. government, which makes this program one of the safest sources of income on earth.
There is also a built-in cost-of-living-adjustment to offset inflation. However, it’s designed to only replace about 40% of pre-retirement income, according to the Social Security Administration. As a result, those who intend to depend solely on this income often find themselves caught financially between a rock and a hard place.
If you are trying to decide when you should start taking Social Security, there are several different factors to consider.
