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Social Security Increases Benefits by 1.3% for 2021

 

Last updated 1/13/2021 at 8:46pm | View PDF

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 1.3% in 2021.

The cost-of-living adjustment (COLA) will begin with benefits to more than 64 million Social Security beneficiaries in January. Increased payments to more than 8 million SSI beneficiaries began on December 31, 2020.

The Social Security Act ties the annual COLA to the increase in the Consumer Price Index, as determined by the Department of Labor's Bureau of Labor Statistics.

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $142,800 from $137,700.

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. Most people who receive Social Security payments will be able to view their COLA notice online on their personal "My Social Security" account. People may create or access this account at http://www.socialsecurity.gov/myaccount.

Information about Medicare changes for 2021 are available at http://www.medicare.gov. Final benefit amounts were communicated to beneficiaries in December through the mailed COLA notice and my Social Security's Message Center.

The Social Security Act provides for how the COLA is calculated. To read more, visit http://www.socialsecurity.gov/cola.

 

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