COLA

Social Security Benefits Increase in 2021

October 13, 2020 • By

Approximately 70 million Americans will see a 1.3 percent increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2021. Federal benefit rates increase when the cost-of-living rises, as measured by the Department of Labor’s Consumer Price Index (CPI-W).

The CPI-W rises when inflation increases, leading to a higher cost-of-living. This change means prices for goods and services, on average, are a little more expensive, so the cost-of-living adjustment (COLA) helps to offset these costs.

We will mail COLA notices throughout the month of December to retirement, survivors, and disability beneficiaries, SSI recipients, and representative payees. But, if you want to know your new benefit amount sooner, you can securely obtain the Social Security COLA notice online using the Message Center in your my Social Security accountYou can access this information in early December prior to the mailed notice.

If you prefer to access your COLA notice online instead of receiving the mailed notice, you can log in to your personal my Social Security account  to opt out of a mailed COLA notice and any other notices that are available online by updating your Preferences in the Message Center. You can also choose to receive a text or email alert when there is a new notice. That way, you always know when we have something important for you – like your COLA notice. If you don’t have an account yet, you must create one by November 18, 2020 to receive the 2021 COLA notice online.

January 2021 marks other changes that will happen based on the increase in the national average wage index. For example, the maximum amount of earnings subject to Social Security payroll tax in 2021 will be higher. The retirement earnings test exempt amount will also change in 2021.

Be the first to know! Sign up for or log in to your personal my Social Security account today. Choose email or text under “Message Center Preferences” to receive courtesy notifications.

You can find more information about the 2021 COLA here.

 


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About the Author

Darlynda Bogle, Assistant Deputy Commissioner

Darlynda Bogle, Assistant Deputy Commissioner

Darlynda Bogle, Assistant Deputy Commissioner

Comments

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  1. Patricia Van Horn

    Why did I not get a stimulus check? I know many people did.

    Reply
    • Vonda VanTil, Public Affairs Specialist

      Hi Patricia, thank you for your question. Please visit the IRS Economic Impact Payments Information Center to answer your questions about eligibility, payment amounts, what to expect, when to expect it and more. If you are unable to find the answer, call the IRS hotline at 1-800-919-9835. Thanks!

      Reply
  2. Ileene

    I have tried all day to give you a change of address and you even say my s s number is wrong. What am i to do?

    Reply
  3. Oran Mitchell Jr.

    It would be nice if all Social Security Beneficiaries could have a personal SSA Account. While I was working in PR I had an account, however, when I came to the Philippines to be with my wife, my account was closed. I know that there must be a good reason for your policies, but is seems to me that all email addresses are assessable.

    Reply
  4. Debra Pease

    Do we know yet what the medicare premiums are going to go up to for 2021?

    Reply
    • Vonda VanTil, Public Affairs Specialist

      Hi Debra, thanks for using our blog. Information about Medicare changes for 2021, when announced, will be available at http://www.medicare.gov. We hope this helps!

      Reply
    • barbara

      more than the 1.3% increase

      Reply
    • Barb

      It’s going up almost 5 bucks. So that raise will probably just cover it..

      Reply
  5. Rungsun Gunkoom

    Thank you for all
    Best Regards
    Mr.Rungsun Gunkoom

    Reply
  6. Carla Bricker

    How much is Medicare going up?

    Reply
  7. Amelia

    I plan to start collecting social security at my FRA. I would like to know if COLA increases (which begin at age 62) are reflected in the “estimated benefit amount” we see on our account page.
    Thanks.

    Reply
    • Vonda

      Hi Amelia, thanks for using our blog to ask your question. If you have a my Social Security account, you can get an estimate of your personal retirement benefits and see the effects of different retirement age scenarios. If you are unable to create an account, you can use our online Retirement Estimator. Both tools provide benefit estimates in today’s dollars. We hope this helps!

      Reply
  8. Paula

    How much can I earn in 2021 and receive benefits. I will retire prior to my full retirement age.

    Reply
    • Vonda

      Hi Paula, thanks for using our blog. The amount you’re allowed to earn while receiving benefits depends on your age. If you attain full retirement age in 2021, the earnings limit is $50,520 but we only count earnings before the month you reach full retirement age. Beginning with the month you reach full retirement age, earnings no longer reduce your benefits, no matter how much you earn. If you’re under full retirement age for the entire year, then we deduct $1 from benefit payments for every $2 earned above the annual limit. For 2021, that limit is $18,960.

      Visit our Retirement Planner: Getting Benefits While Working for more details.

      Reply
  9. jacques joseph

    I WANT TO RETIRE IN 1/1/2021 , HOW CAN I APPLY FOR ? THE OFFICES ARE CLOSED.

    Reply
    • Vonda

      Hi Jacques, thanks for using our blog. Our system is set up to take applications four months in advance, and when you’re ready, you can apply for your retirement benefits online.

      If you are unable or do not want to apply for benefits online, you can schedule an appointment by calling us at 1-800-772-1213 or you can contact your local Social Security office. Please look for the general inquiry telephone number at the Social Security Office Locator. The number may appear under Show Additional Office Information. Please be aware that our call wait times are longer than normal. We hope this information helps.

      Reply
  10. jozsef perger

    for the year 2021, what will be taken out of your social security for the month for medicare A &B

    Reply

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