AROUND 69million Americans who rely on benefits from the state will see payouts rise by 1.6 per cent – or up to $552 (£436.44) a year – in 2020, the Social Security Administration has announced.
The change will take force from December 31, 2019 for more than 8million Supplemental Security Income (SSI) claimants, and from January 2020 for more than 63million people receiving Social Security payments.
This will see the standard SSI federal payment for an individual rise by $12 (£9.49) a month – $144 (£113.85) a year – from $771 (£609.58) a month to $783 (£619.06) a month.
While for couples the standard payment will rise by $18 (£14.23) a month – $216 (£170.72) a year – from $1,157 (£915.77) a month to $1,175 (£930.11) a month.
Social Security payments meanwhile vary depending on what type of payment you get.
Retirees, for example, will see monthly payments rise by $24 (£18.97) – $288 (£227.62) a year – from $1,479 (£1,172.33) to $,1503 (£1,191.43).
What is SSI?
SUPPLEMENTAL Secutiry Income (SSI) is a scheme that pays benefits to disabled adults and children who have limited income and resources, as well as to people aged 65 or older who meet the financial criteria.
It provides cash to meet basic needs for food, clothing, and shelter.
SSI is financed by general funds from the US Treasury, which is collected via personal income taxes, corporate taxes and other taxes.
See the Social Security website for information on how to apply.
While disabled workers will see their payouts rise by $20 (£15.80) a month – $240 (£189.64) a year – from $1,238 (£979.64) to $1,258 (£995.48).
The largest payment increase is for widowed mothers with two or more children who will see monthly benefits rise by $46 (£36.34) – $552 (£436.04) a year – from $2,889 (£2,290.23) a month to $2,935 (£2,326.93).
See the Social Security Administration for the full list of all the changes.
You can qualify for both Social Security and SSI payments.
The hike is down to the annual "Cost of Living Adjustment (COLA), which is made to ensure benefits rise in line with the cost of living.
This rate is determined by the Bureau of Labor Statistics in the Department of Labor, although the increase is smaller than 2019's 2.8 per cent rise.
What are Social Security payments?
SOCIAL Security payments are made to retirees and their families, as well as to disabled people and their families.
But crucially, you have to have worked and paid into the Social Security scheme for long enough to get these benefits.
Survivors benefits are also paid to the families of workers who have died.
Nearly nine out of ten individuals age 65 and older receive Social Security benefits, and they represent about 33 per cent of the income of the elderly, according to Social Security.
Social Security payments are funded through taxes taken under the Federal Insurance Contributions Act (FICA) or the Self-Employment Contributions Act (SECA).
Here's how to apply for Social Security.
You'll be told how this affects your benefits by post and you can also check via the "My Social Security's" online messaging centre.
But at the other end of the scale, while the tax rate all workers pay to fund Social Security and Medicare is remaining the same at 7.65 per cent for employees and 15.3 per cent for the self-employed, the maximum amount you're taxed on is rising.
This will increase from $132,900 (£105,822.95) in 2019 to $137,700 (£109,616.09) in 2020.
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