October 14, 2020

Social Security Cost-of-Living Adjustment Will Be 1.3 Percent in 2021

The U.S. Social Security Administration on Tuesday announced that beneficiaries will see a 1.3 percent increase to their monthly checks next year to reflect the cost-of-living adjustment (COLA), reports CNBC. The increase applies to roughly 70 million Americans, including those receiving Social Security and Supplemental Security Income benefits. The Senior Citizens League in September forecast a 1.3 percent increase based on available consumer price index data. The gain may not be a positive development for retirees and other beneficiaries, many of whom may have had a rougher time making their benefit checks last this year due to the COVID-19 pandemic. Retirees’ estimated average monthly benefit is expected to rise $20 per month in 2021, to $1,543 from $1,523 after the 1.3 percent increase. The maximum amount of wages taxed for Social Security will be $142,800 next year, up from $137,700 this year. The COLA is smaller than the 1.6 percent boost retirees and other beneficiaries saw in 2020, but tops COLAs seen in some recent years.
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