Tag: changes for 2020 social security benefits

What’s New with Social Security in 2020?

What’s New with Social Security in 2020?

changes for 2020 social security benefits
Do you know the changes for 2020 social security benefits?

The new year is around the corner, and with it comes some much-anticipated news about social security benefits. Social Security Disability Advocates USA is here with everything you need to know about the upcoming year’s social security adjustments.

2020 Social Security Adjustments

The Social Security Administration (SSA) recently announced that the 2020 Cost of Living Adjustments (COLA) amount to a 1.6% increase. While this isn’t as much as 2019’s 2.8% increase, the COLA news is one of the most important changes for 2020 social security benefits.

As a result, the average retired worker will receive approximately $24 more in their social security check each month. While it’s not much, it’s better than receiving no boost at all—as was the case in 2009, 2010, and 2015.

Additionally, beneficiaries of Supplemental Security Income (SSI) will receive more, too. Individuals will receive $783/month (up $12 from $771/month), and couples will receive $1,175/month (up $18 from $1,157/month).

One of the most important changes for 2020 social security benefits, though, is the Substantial Gainful Activity (SGA) adjustment. The threshold amount went up across the board, meaning that disabled workers can earn more money without fear of losing their benefits. 2020 SGA is $2,110/month for blind individuals (up $70 from $2,040/month) and $1,260/month for non-blind individuals (up $40 from $1,220). Again, while not much, this allows disabled workers some additional freedom to work without losing benefits.

In tandem with SGA adjustments comes a raised Trial Work Period (TWP) amount. Trial Work Periods occur when a disabled worker wishes to attempt going back to work while still receiving full Social Security Disability Insurance (SSDI) benefits. If a disabled worker earns more than the TWP threshold amount for nine months out of a 60-month period, their benefits may be suspended. For 2020, the TWP threshold amount went up $30 from $880/month to $910/month, giving workers more breathing room before having their income count toward their TWP.

Other changes for 2020 social security benefits aren’t necessarily so positive. For instance, The maximum taxable earnings went up across the board. For Old Age, Survivors, and Disability Insurance (OASDI), the amount went up from $132,900 to $137,700. Furthermore, the amount for a social security work credit (known as a quarter of coverage) went up from $1,360 to $1,410, meaning that workers must earn more to receive credits that count towards SSDI and retirement benefits. 

Tips for the Future

With all the changes for 2020 social security benefits in mind, what should you do? Well, it’s not always easy to know what to do. But SSDA USA is here with some guidance.

  • Consider Working More—If you are approaching retirement or have already retired, a 1.6% COLA may seem like it’s not enough. And for many senior citizens, it isn’t. This is why, sometimes, continuing to work can help offset a low COLA. Consider consulting for your previous field of work, or trying to turn your hobby into a profit.
  • Maintain Other Sources of Income—Remember, social security retirement benefits are not meant (and never were meant) to replace your full source of income. They only cover about 40% of your earnings. Therefore, it’s highly suggested that you maintain other sources of income, e.g. retirement savings accounts, pensions, etc., in your golden years.
  • Consult a Lawyer—If you have questions about your social security benefits, reach out to a Social Security Disabilities lawyer today. SSDA USA can help you through the entire application process and can inform you about the benefits tailored for you.

Have Questions about the 2020 Changes for Social Security Benefits?

If you have any social security questions or concerns, get in touch with Social Security Disability Advocates USA. Our advocates are ready and standing by to address all your social security needs. Get in touch with us by calling (602) 952-3200 , or contact us online via a contact form or our LiveChat feature. Don’t keep your questions bottled up; chat with us today!

This is attorney advertising. SSDA, LLC is a group of attorneys that pursues claims for Social Security Disability benefits on behalf of its clients against the Social Security Administration. SSDA, LLC is in no way a part of the Social Security Administration. Further, the information on this blog is for general information purposes only. Nothing herein should be taken as legal advice. This information is not intended to create, and receipt or viewing does not constitute, a representative-client relationship.