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Here’s Another Potential COVID-19 Social Security Impact
Anyone turning age 60 in 2020 may be facing an unexpected impact–and not a good one–as a result of the pandemic’s ravaging of the U.S. economy. Since Social Security’s computations use an average of the highest 35 years of earnings under the system, and since these years are individually adjusted (present valued) based on the National Average Wage Index up to the year a beneficiary reaches age 60, it looks possible that the effect of job losses, as well as situations where workers move into lower-paying jobs and the historically high level of unemployment, is likely to suppress the average index for 2020. So, anyone turning 60 this year may see a lower indexing factor applied to their benefit calculation.
Bernice Napach, senior writer at ThinkAdvisor, takes a look at this statistical quirk in a post today www.thinkadvisor.com. Check it out here…