Tariffs May Boost Next Year's Social Security Cost-of-Living Adjustment

A report from the Senior Citizens League forecast this year's Social Security Cost-of-Living Adjustment (COLA) at 1.7 percent for 2020, reports CNBC . If tariffs are enacted, the cost of living could go up and boost the COLA for next year. The Senior Citizens League's Mary Johnson warns retirees reliant on Social Security benefits could by hit by elevated costs for goods. Last year's COLA was 2.8 percent, marking the highest increase since 2012. Johnson says spiking gas prices and housing costs have helped push up the COLA for this year. The Senior Citizens League report also verified that monthly Social Security checks now cover fewer costs compared to years past. For people retired since 2000, their benefit purchasing power has improved by only 1 percent. COLAs have raised retirement benefits by 50 percent from 2000, but goods and services costs for retirees have risen 100 percent. Prescription drug costs have climbed 53 percent since 2000, while homeowners insurance has risen 199 percent, and Medicare Part B premiums 198 percent.