As a result of the COVID-19 pandemic, about three million retired workers who turn 60 years old in 2020 will very likely have much lower lifetime Social Security benefits than previously expected, according to the Center for American Progress (CAP), a public policy research and advocacy organization based in Washington, DC.
Without legislative changes, the average earner stands to lose nearly $1,500 per year for the rest of their life, says the CAP.
That’s because the initial retirement benefits that Social Security beneficiaries receive in the first year of retirement are determined by a formula that depends, in part, on the growth of average wages in the economy. The key measure of average wages—the average wage index (AWI)—could decline in 2020 by 5.9 percent based on the latest projections from the chief actuary of the Social Security Administration.
Earlier this month, Chairman of the House Ways and Means Social Security Subcommittee, Rep. John Larson (D-CT), introduced H.R.7499 – Social Security COVID Correction and Equity Act, to fix the problem. To learn more, read the full article.
Pandemic Could Reduce 3M Workers’ Social Security Benefits
