Social Security cost-of-living adjustment to affect nearly 1.3 million Missourians

This month, more than 16,600 Cape Girardeau County residents will see a 1.6% cost of living adjustment (COLA) in their Old Age Survivor, Disability Insurance (OASDI) — or Social Security — benefits, according to the Social Security Administration.

That equates to more than $21,613,000 in benefits paid out by the SSA to Cape Girardeau County alone. About 75% of that amount is paid out to beneficiaries listed as retired workers, and about 13% is paid to disabled workers.

According to the most recent SSA data, there are 1,293,897 Missourians receiving more than $1.7 billion in OASDI benefits statewide.

COLA is calculated by the U.S. Bureau of Labor Statistic’s Consumer Price Index, which measures the average change over time in prices paid by consumers for goods and services.

While the monthly amount of benefits payable depends upon factors such as age, marital status, number of dependents and disability status, an SSA fact sheet reveals beneficiaries filed as retired workers can expect a monthly payment of $1,503, an increase of about $24 over last year.

“It’s just on the smaller side this year, so the impact is probably going to be more understated than previous years,” said Jackie Dover, public information director at Southeast Missouri Area Agency on Aging.” But, it does help, even at 20 to 30 dollars of increase.”

Automatic annual COLAs began in 1975 to ensure the purchasing power of Social Security and Supplemental Security Income benefits were not eroded by inflation. Before Congress enacted the law in the 1970s, increases to benefits were made only when Congress enacted special legislation.

For the last decade, COLAs have hovered between 0 and 3.6%, with no adjustment for three of those years.

According to information from S. Kevin Bonee, district manager of the SSA’s Missouri Field Office in Cape Girardeau, other changes that will happen this year “reflect the increase in the national average wage index.” Such changes include the amount of maximum taxable earnings subject to the Social Security tax. For 2020, that amount is $137,700, up $4,800 from 2019.

The earnings limit for workers who are younger than full retirement age — 66 for those born between 1943 and 1954 — will increase to $18,240. For people turning 66 in 2020, the earnings limit will increase to $48,600.

For more information, visit the Missouri Field Office of the SSA at 2445 Cape Centre Drive, call (800) 772-1213 or visit www.ssa.gov/cola.

County No. of beneficiaries in current-payment status Amount of benefits in current-payment status

Alexander County 1,685 $1,932,000

Bollinger County 3,285 $3,750,000

Cape Girardeau County 16,685 $21,613,000

Perry County 4,505 $5,709,000

Scott County 10,465 $12,490,000

Stoddard County 8,165 $9,468,000

Union County 4,765 $5,559,000