Greetings. I was born in 1960. I was hoping federal legislation was going to address the SSI formula that was impacted by the economic downturn in 2020. Some news stories estimated people born in 1960 would get far less SSI because of the poor economy in 2020. Question do you have any knowledge of federal legislation helping those born 1960? Did legislation pass or is it pending? I was late getting into the workforce; raised autistic child. Currently the SSI website reports I will receive $930/mth, all things being equal. Do you know is that number accurate based on the 2020 impact?

Hi. To clarify your question for other readers, I'll start with a brief explanation. Social Security retirement benefits are based on an average of a person's highest 35 years of Social Security covered wage-indexed earnings. Indexing converts a person's historical annual earnings to amounts more reflective of current day dollars. For example, a person born in 1959 who earned $20,000 in 1991 would have those earnings indexed to an amount close to $50,000 when calculating their Social Security retirement benefit rate.

Worker's earnings histories are indexed based on the average wage index (AWI) in the year they reach age 60. Therefore, the AWI in 2020 will be used to calculate the retirement benefit rates for people born in 1960. And, if the 2020 AWI is lower due to the pandemic, the historical indexed earnings amounts and the resulting benefit rates for people born in 1960 will also be lower.

I think it would be hard to for Congress to finalize any legislation intended to address this issue at the present time. Retirement benefit rates for people born in 1960 can't be precisely calculated until the 2020 AWI is determined, and that amount won't be known until later this year. In other words, it's difficult to fix a problem until you find out how much of a problem there actually is.

I asked Larry for his thoughts on your question, and Larry strongly believes that Congress will take action to address the benefit calculation problems caused by the pandemic. In fact, he reports, there are already Congressional bills in the works to address this situation. Whether or not your benefit estimate shown on Social Security's website turns out to be accurate depends on the eventual amount of the 2020 AWI, and what action is taken by Congress to address the issue.

Best, Jerry