COLA

Social Security Benefits Increase in 2021

October 13, 2020 • By

Reading Time: 2 Minutes

Last 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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About the Author

Darlynda Bogle, Assistant Deputy Commissioner

Darlynda Bogle, Assistant Deputy Commissioner

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Comments

  1. rai C.

    thnak

  2. david b.

    how much did my ss change

    • V.V.

      Hi David, thanks for using the blog to ask your question. All monthly Social Security and Supplemental Security Income (SSI) benefits for more than 70 million Americans increased 1.3 percent in 2021. For more details about the new COLA, visit our Cost-of-Living Adjustment information page.

  3. Pat R.

    I have lived and worked in Maryland most of my life but have not started my SS benefit. If I retire to another state will my estimated benefit change?

    • V.V.

      Hi Pat, thanks for using our blog. Social Security is a federal program, and is not state-specific. If you aren’t receiving benefits, and 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. You can also view the benefits you could receive based on your spouse’s earnings history, or the benefits your spouse could receive based on your earnings history.

      If you are unable to create an account, you can use our online Retirement Estimator.

  4. Daniel E.

    Benifits

  5. Robert A.

    I would like to print a current copy of my award letter. What are the steps?
    Thank You
    Bob e.

    • V.V.

      Hi Robert, thanks for using our blog. Check out our Frequently Asked Questions web page for details on how to get a benefit verification letter. This letter is sometimes called a budget letter, a benefits letter, a proof of income letter or a proof of award letter. You also may be able to request a benefit verification letter by using our automated telephone service at 1-800-772-1213. You can conduct the automated services 24 hours a day. At the prompt, indicate that you’re requesting a proof of income letter. We hope this helps.

  6. Robert T.

    When do we see the 2020 SSA-1099???

    • V.V.

      Hi Robert, thanks for using our blog to ask your question. A Social Security 1099 is mailed out each January to people who receive benefits and tells you how much Social Security income to report to the IRS on your tax return. A replacement SSA-1099 for 2020 will be available after February 1, 2021. At that time, you can instantly download a printable copy of the tax form by logging in to or creating a free my Social Security account. Check out our Frequently Asked Questions web page for additional information.

  7. Shelly B.

    blickshelly@gmail.com

  8. Beatriz I.

    Hola mi nombre es beatriz isabel vasconcellos. Mi numero de social es ***-**-**** mi motivo de esta nota es que estoy esperando una contestación del social security por un deposito que me tenían que hacer de una pencion de mi esposo fallecido en septiembre 5 de 2010.en enero del 2020 el social me mando unos papeles a llenar y poner mi cuenta de banco para el deposito nota que llene y mande pero nunca tuve noticia, desde ya le agradeceria su contestación muchas gracias !

    • Beatriz I.

      Hola mi nombre es beatriz isabel vasconcellos y mi número de social es ***-**-**** mi nota es por que estoy esperando una contestación por la pencion de mi esposo ignacio Arturo jara quien fallecio en septiembre 05 de 2019 y me dirijo a ustedes por que en enero del 2020 el social security me mando un sobre para llenar con mis datos y la cuenta de banco para hacerme el deposito de la pencion de mi esposo y no recibí ninguna notificacion mas les agradeceria recibir alguna contestacion a mi pedido desde ya muchas gracias !

  9. Emmy M.

    My friend’s dad passed away 2 weeks ago due to Covid. Are there any benefits that she can apply? She also has a mom who is sick with COVID. I am trying to help her out. Thanks.

    • V.V.

      We’re sorry for your friend’s loss, Emmy. 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.

      You cannot report a death or apply for survivors benefits online. If your friend needs to report a death or if her mom needs to apply for the lump sum death payment and widow’s benefits, she should call her 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.

      • Donna J.

        Go to S.S. OFFICE AS SOON AS YOU HAVE A DEATHH CERTIFICATE APPLY FOR SPOUSEL BENEFITS I HAD TO WHEN I LOST MY HUSBAND IN OFFICE THEY WERE A GREAT HELP TO ME N I DO GET MY LATE HUSBANDS BENEFITS HELPS MORE THAN ANY CAN IMAGINE..SORRY FOR YOUR LOSS N PRAYING FOR YOUR MOM HANG IN THERE THINGS WILL GET BETTER

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