Seniors Will Get Modest Cost-of-Living Increase From Social Security in 2020

The U.S. Social Security Administration announced that millions of Americans will receive a 1.6 percent cost-of-living increase from Social Security next year, amounting to an extra $24 a month for the average retiree, reports PBS NewsHour . This marks a reversion of the cost-of-living adjustment (COLA) to moderate gains following a substantial hike in 2019. However, seniors and advocates say COLA fails to accurately reflect their costs, especially for healthcare. Democrats in Congress and presidential hopefuls also are criticizing COLA, adding momentum to their push to expand Social Security benefits. The estimated average monthly Social Security payment for a retired worker using the COLA formula will be $1,503 a month beginning in January. Democratic presidential candidates Elizabeth Warren and Bernie Sanders are proposing replacing COLA with a measure of inflation that mirrors expenses for households headed by a person 62 or older; their Social Security agenda would add benefits and hike taxes to keep the program solvent. According to the Urban Institute's Richard Johnson, the COLA measure currently used reflects workers, but not retirees. "If the goal is to maintain seniors' living standards, then the cost-of-living adjustment is going to fall short if it doesn't measure seniors' spending," he warned.