Is there any update you can give re the wage price index issue for people born in 1960?

Hi. Yes, I do, and I'm glad you asked about this. To clarify for other readers what you're referring to, Social Security retirement benefits are calculated 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 Index (AWI) amount in the year that a person reaches age 60. Typically, AWI amounts increase each year, resulting in higher indexed earnings and higher resulting benefit rates.

Since the onset of COVID there has been much concern about how Social Security benefits for people born in 1960 would be affected. The concerns were predicated on the expectation that the AWI would drop drastically in 2020 due to COVID, causing benefit rates for people born in 1960 to be lower than expected. Such concerns turned out to be unfounded, because the AWI actually increased from $54,099.99 in 2019 to $55,628.60 in 2020 (https://www.ssa.gov/oact/cola/AWI.html). Such an increase is in line with the increases in past years, so it turns out that benefits for people born in 1960 will not be unfairly disadvantaged due to COVID.

Best, Jerry