How COVID-19 Could Affect Your Social Security Benefits

By April 29, 2020 June 25th, 2020 No Comments

In the midst of the coronavirus (COVID-19) pandemic, it’s natural for those who receive Social Security benefits to wonder about how this outbreak could impact their ability to obtain their payments. If you are currently receiving Social Security benefits, or you’ve been thinking about how the pandemic may impact your financial future, it’s worth taking some time to learn what financial experts are saying about Social Security and the coronavirus.

Cost-of-Living Adjustments in 2021

Many people are wondering if there will be a cost-of-living adjustment (COLA) for 2021. Over the years, the COLA has varied from year to year. In three of the past 11 years, there has been no COLA to Social Security benefits. The year 2012 saw the largest COLA increase at 3.6 percent. Given the current economic situation, it’s helpful to understand that the Social Security Administration (SSA) is legally obligated to adjust benefits to take into account the cost of inflation. While we will not know the COLA for 2021 until it is announced next fall, it’s important to recognize that you should still count on receiving benefits that have been adjusted to account for inflation.

What Future Retirees Need to Know

As many Americans near retirement age, they are asking whether the COVID-19 pandemic will impact when they begin to receive Social Security benefits. Right now, the answer is no. According to many financial advisors, those who have found themselves unemployed as a result of the economic downturn should first seek and use up any unemployment benefits or severance packages before obtaining Social Security benefits. The longer you can delay signing up for Social Security benefits, the larger the amount of benefits tends to be. According to the Social Security Administration, a person can receive the largest benefit when they retire at age 70. 

Questions? We Can Help

If you have questions or concerns about your Social Security benefits, now’s the time to reach out to a knowledgeable Social Security attorney who can provide you with trusted and effective legal guidance during this uncertain time. Schedule a free consultation with the experienced Northern Alabama attorneys at Bevill & Bevill, LLC today by calling (205) 221-4646.