By The Numbers
By the Numbers: Zero percent COLA?
George Moriarty, chief content officer for InvestmentNews, says retirees are likely to see a bigger cost-of-living adjustment to their Social Security benefits in 2021 than seemed likely a few months ago.
Transcript:
I’m George Moriarty and this is By the Numbers
Today I’m talking Retirement and the number of the day is 1 point 3
2020 hasn’t brought much great news, but it looks as if there is a glimmer of hope that the nearly 65 million Americans who collect Social Security retirement, disability and survivor benefits will receive a 1.3% cost-of-living adjustment, aka COLA, in 2021.
Although it would be the second-lowest COLA on record, it is an improvement! Earlier this year, many were forecasting no COLA this year as a result of the devastating economic impact of the pandemic.
The official announcement won’t come until October, but this new forecast comes from Mary Johnson, policy analyst at the Senior Citizens League, and is based on the consumer price index data through August.
The projected COLA affects not just monthly Social Security benefits, but also the maximum amount of annual wages subject to payroll taxes.
While any increase would be good news, if it is just that 1 point 3%, 2021 would mark the fifth year since 2010 in which there will be an extremely low adjustment, or no adjustment at all. Stay tuned!
I’m George Moriarty with InvestmentNews, and from my home office to yours, stay safe and we will see you next week!
