You may have heard that the Social Security Administration officially announced that Social Security recipients will receive a 1.6% cost-of-living (COLA) adjustment for 2020. Those increased payments will start in January 2020.
On its website, the Social Security Administration says the purpose of the COLA is to ensure the purchasing power of Social Security benefits is not eroded by inflation.
“Congress enacted the COLA provision as part of the 1972 Social Security Amendments, and automatic annual COLAs began in 1975,” the website says. “Before that, benefits were increased only when Congress enacted special legislation.”
If this year’s COLA has you thinking about your sources of retirement income, please feel free to give me a call so we can discuss what’s on your mind.