Social Security Benefits Increase in 2021
Reading Time: 2 MinutesLast Updated: November 2, 2023
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 personal my Social Security account. You 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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Tags: COLA, my Social Security, my Social Security account
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Darlynda Bogle, Assistant Deputy Commissioner
Darlynda Bogle, Assistant Deputy Commissioner
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cynthia e.
I recently talked with a social security representative in our area and she mentioned the option of taking 6 months back pay. Is there an area on your website that explains this concept thoroughly to be reviewed.
S.D.
Thank you for your question, Cynthia. If you’re asking about retirement applications filed after your full retirement age (FRA), we allow up to 6 months retroactivity. However, if you file less than 6 months after FRA, we only pay retroactive benefits back to the month you reached FRA. If you are eligible and elect retroactivity you forfeit the delayed retirement credits you may have accrued. For more information, please review our current policy. We hope this is helpful.
Carol
Want to know how the amount of deduction for Medicare is determined. My overall income has decreased drastically from my State pension due to their error & my GAI is substantially less. What are the Medicare deductions based on.
Luis D.
I’m starting wage reporting, the phone number for ticket to work doesnt work one time it did. I’m trying calling the local office this Oct. I called in Nov. Theirs Nov. I called in Dec. Their calling me back saying I should send my pays stubs in or I will not get a check in Jan. I only make about 500.00 extra a month. I ask to speak to someone in regards to this Mr. Kelly and he ask me did I receive a phone call . The letter they sent had the wrong number on it. So I’m waiting for a review. If I’m in the Ticket to work program It states that they contact Local office so that I will not have to be at these miss understated phone call or appoints for yearly reviews. Please answer asap. I have to send them the pay stubs when they sent me a letter asking for permission to get all my income information from other Gov. Offices. Than I called them in Dec 8 and gave them total amount. Why they harassing me or intimidating me. I’d like to appeal that or speak to a lawyer.
K.T.
Hi, Luis. Thank you for reading our blog and asking your question. You can contact the Ticket to Work Help Line at 1-866-968-7842, Monday through Friday from 8:00AM – 8:00PM EST to discuss your options. For more details about the ticket to work program visit here. We hope this helps.
Dianne G.
I paid for my brothers burial. Is there a $250 death benefit? If so, what do I do to receive it?
S.D.
We’re sorry for your loss, Dianne. Thanks for reading our blog and for your question. Social Security pays a one-time lump-sum death payment of $255 but only to a surviving spouse or any children who are eligible for benefits on the deceased parent’s record. We hope this is helpful.
Betty L.
My brother just passed away, 78 yrs old and on SS and a friend shared with me that there might be a $250 allowance for his burial. Is this true? He was a widow and I am the only living relative he had. I also paid for his burial. How does this work?
S.D.
Hi, Betty, we’re sorry for your loss. Thanks for reading our blog and for your question. Social Security pays a one-time lump-sum death payment of $255 but only to a surviving spouse or any children who are eligible for benefits on the deceased parent’s record.
PATRICIA W.
Why haven’t I received a pay increase in my SS check for the last 2 increases. I only get $206.50 minus medicare 120.50 = my check 86.00. If anyone needs a increase its me
CLYMA C.
I WOULD LIKE TO KNOW IF I CAN GET MORE
SSI I DO NOT HAVE ENOUGH MONEY TO LIVE
ON . (1300.00) MY AGE IS 84…..WHAT DO YOU
THINK….HELP!!!!!!!!!
MY …..EMAIL…Clyma2040@gmail.com
thanks……..
V.V.
Hi Clyma, thanks for using our blog. To apply for Supplemental Security Income (SSI), please call us at 1-800-772-1213 for assistance or you can call 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.
Janet V.
I am currently 64 and 6 months. Thinking about signing up for SSI. Which rate applies, the rate at the time I sign up or the rate on the date first received?
V.V.
Hi Janet, thanks for using our blog. Please call your local Social Security office to make an appointment to file for SSI. 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.
CHERYL B.
Why is there a deduction of $18.50 monthly for Medicare Medical Insurance on my new benefit statement for 2021?
V.V.
For your security, Cheryl, we do not have access to private information in this venue. We ask that members in our Blog community work with our offices with specific questions. You can call us at 1-800-772-1213 for assistance or you can call 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.
Ruby V.
It’s a shame the government keeps taking money away from us retired people but Cost of Living raises aren’t enough to buy a loaf of bread. Shame on congress for blowing all our money and keeping us in poverty.