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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Patricia
Hello
I am eligible to collect my pension @ 66.2 months, in June 2021. Do I need to apply now or nearer to June?, and will the payments be taxed?
Thanks in advance!
V.V.
Hi Patricia, thanks for using our blog. The minimum age for Social Security retirement benefits is 62. To begin receiving reduced retirement benefits at 62, you are required to be age 62 for the entire month. For SSA purposes, individuals born on the first or second day of the month are considered age 62 for the “full” month and could be entitled to benefits for the month of their 62nd birthday. However, if born on the 3rd or later, you must wait a month.
You can apply four months in advance of when you want your benefits to start. The exact payment date is determined by your date of birth. For future pay days, you may find the Schedule of Social Security Payments calendars useful.
For information about taxation of benefits, visit our Income Taxes And Your Social Security Benefits web page.
Cheryl C.
I started taking social security last November 2020, should I be getting an increase this year or do I have to wait?
V.V.
Hi Cheryl, thanks for using our blog. All monthly Social Security and Supplemental Security Income (SSI) benefits for more than 70 million Americans will increase 1.3 percent in 2021. For more details about the new COLA, visit our Cost-of-Living Adjustment information page.
Virginia W.
Why are you taking money out of my social security every month?
V.V.
For your security, Virginia, 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.
ruth b.
What about people on ssdi will they get a increase also
V.V.
Hi Ruth, 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 increase 1.3 percent in 2021. For more details about the new COLA, visit our Cost-of-Living Adjustment information page.
Lloyd R.
2 months of my 1st year of SS was withheld because of exceeding the allowable earnings of $18,240 for year 2020. Will my 2021 SS benefit be adjusted to reflect the start of my SS benefits 2 months later?
Lloyd R.
I started SS February 2020. Was my earnings for 2019 included in the calculation for my benefit. If not, will my benefit be adjusted.
V.V.
Hi Lloyd, thank you for using our blog to ask your question. Each year we review the records for all Social Security recipients who work. If your latest year of earnings turns out to be one of your highest years, we refigure your benefit and pay you any increase due. This is an automatic process, and benefits are paid in December of the following year. For example, in December 2020, you should get an increase for your 2019 earnings if those earnings raised your benefit. The increase would be retroactive to your first month of entitlement in 2020.
Check out our Receiving Benefits While Working web page for more details.
mae l.
I need my work history from 1964 to 1996 and I dont know where to look for it except social security. I cannot remember back that far I need it for medical reasons
V.V.
Hi Mae, thanks for using our blog to ask your question. Check out our Frequently Asked Questions web page for details on how to get a detailed earnings statement that includes your employers. We hope this helps!
Elana C.
How do I get a copy of award letter?
V.V.
Hi Elana, 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.
Thame
Does the supplemental security income get a raise this year 2021. I’m heard from my family that is gonna raise $100 of this year?
Jean
My mother in law died on December 23rd, 2020. She received her monthly benefit on December 31st, 2020. Is this payment for December or January? Does it need to be returned or does it belong to her estate?
V.V.
We are very sorry for your loss, Jean. To be eligible for a Social Security benefit payment, a person has to live throughout the entire month. We can’t pay benefits for the month of death. If the deceased was receiving Social Security benefits, you must return the benefit received for the month of death or any later months. Keep in mind that Social Security benefits are paid the month after they are due. For example, if the person dies in December, you must return the benefit paid in January and continuing. However, some of the deceased’s family members may be eligible to receive survivors benefits. For details on survivor benefits, check out our Survivors Benefit web page.