Are there any updates on the “glitch” in social security payments for people who turned 60 in 2020? The glitch in the formula occurred as a result of something to do with the pandemic. Thank you.

Hi. Nothing final has been passed by Congress to the best of my knowledge. To clarify what you refer to as a glitch, Social Security retirement benefits are based on an average of a person's highest 35 years of Social Security covered wage-indexed earnings. The indexing is based on the national average wage (NAW) amount in the year that a person reaches age 60. Typically, NAW amounts increase each year, resulting in higher indexed earnings and higher resulting benefit rates. But due to the pandemic, it's anticipated that the NAW in 2020 will be lower than 2019. That would result in lower indexed earnings and lower benefit rates for people born in 1960.

I don't believe that the national average wage amount for 2020 has yet been released, and until that happens the actual impact of the pandemic on retirement benefit rates for people born in 1960 can't be determined. I assume that Congress is waiting to determine the actual scope of the problem before finalizing any type of fix.

Best, Jerry