For those depending on social security disability benefits to get by, cost of living increases that are announced in October are a big deal. The calculation for an individual is pretty basic. When the cost of goods increases, they naturally need more money to pay for them.
The Social Security Administration uses data from the year to determine what the amount for the next year will be. Much of the estimates that come out throughout the year are based on the Consumer Price Index from the Bureau of Labor Statistics.
2020 SSDI Cost of Living Increase
Currently, the 2020 SSDI cost of living increase is estimated to be 1.7 percent. This would be down from 2.8 percent in 2019 – the highest amount since 2012. The current projection of 1.7 percent is actually up significantly from the 0 that was previously being calculated earlier in the year.
Rising gas and housing costs have driven the number up from 0 to 1.7 so far this year. And while the increases are important, the buying power of social security has actually decreased through the years – as much as 33% since the year 2000.
Interestingly, the political climate could affect what the final number turns out to be. If Chinese tariffs go into effect, it could drive the cost of goods even higher, which would result in a higher cost of living. While this would provide relief for those living off of social security disability, it would ultimately mean that every American would be paying more for goods.
No matter where the SSDI cost of living increase ends up for 2020, obtaining social security disability benefits is still a very important step for those in need. Anyone looking to apply for benefits or that has been denied can contact us at 844-432-0114 today for a risk-free evaluation.