Social Security Disability, Veterans Disability Beneficiaries To Receive 1.6% COLA in 2020

Individuals who receive Social Security Disability Insurance (SSDI) benefits and veterans disability benefits will see a 1.6% increase in their monthly benefit in 2020, according to Allsup, a nationwide provider of SSDI, return to work, veterans disability appeal and Medicare plan selection services.

The increase is a result of the annual cost-of-living adjustment (COLA), which is an automatic calculation applied to Social Security benefits.

“This annual increase is one of the important benefits for SSDI recipients,” said Mike Stein, senior analyst. “People with disabilities often have to make tough choices about medical expenses and other living expenses, and every little bit helps.”

The average SSDI benefit will increase to $1,258 from $1,234, which is an increase of $20 per month (or $240 annually), according to the Social Security Administration.

The COLA is calculated using third-quarter results from data reported by the U.S. Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Typically, a comparison of the current year to the previous year determines if there is an increase.

The increase takes effect for Social Security retirement and SSDI recipients in January 2020. The COLA also is applied to veterans disability compensation and pension benefits, managed by the U.S. Department of Veterans Affairs, and Supplemental Security Income (SSI) benefits. Find more information online.

Increases have taken place every year since 1975, except for 1983, 2010, 2011 and 2016. There was an administrative change in 1983, and consumer prices did not experience typical increases in 2010, 2011 and 2016.

SSDI is a payroll tax-funded, federal insurance program. A portion of FICA taxes that workers pay is set aside for SSDI, as well as Social Security retirement and Medicare. SSDI benefits provide monthly income and access to Medicare after a 24-month waiting period.

Benefits Help

Medicare recipients have from Oct. 15 to Dec. 7 to make Medicare plan changes for their 2020 healthcare coverage. To speak to an Allsup Medicare Advisor specialist, call (866) 521-7655.

Veterans who need assistance can visit our web page and get help with planning a VA disability appeal.

To determine your likelihood of qualifying for SSDI benefits, get started with empower and take our Free SSDI Assessment.

If you receive SSDI and are considering returning to work, contact Allsup Employment Services at (866) 540-5105.

 

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By |2019-10-10T21:14:57+00:00October 10th, 2019|Tags: , , , |Comments Off on Social Security Disability, Veterans Disability Beneficiaries To Receive 1.6% COLA in 2020
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