COLA

Social Security Benefits Increase in 2021

October 13, 2020 • By

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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. Linda M.

    Dear SSA Commissioners: COLA is flawed so stop using it to figure benefit increases for us. Prices for everything have increased at least 30% since the plannedemic virus. A 1.3 pc increase is a downright insult to all hard working seniors who rely on a benefit. The increase is next to zero after you deduct the increase in the medicare premium which is touted to be $158 for 2021. So start using accurate COL figures.

  2. Marina Z.

    I want to apply for my ss but I know nothing about these things. I’m afraid I will fill out the wrong thing or way and mess it all up. I have no idea how to even start mean while I’m getting behind on all my bills. Unable to work everyday. Can you help me or tell me where I can get help with this thank you Marina Zamora.

  3. Jackie

    Wow we have worked all our lives for this it’s a shame

  4. Pim B.

    THANK YOU!

  5. Penny

    Unbelievable that the cost of living has gone shy high and that’s all they can give seniors. I know many of them must once again decide between food or drugs. This country should be ashamed of the treatment the elderly receive.

    • BETTY G.

      totally agree!!

  6. Kathleen P.

    No matter what kind of raise we get they take it all back by raising Medicare and they will increase the Medicare deductible . I worked 45 years and barley just barely make my mortgage payments. Not all of us made good wages

  7. Linda W.

    Why does Social Security claim the ‘Social Security Benefits’ for 2021 will increase, when the ‘Increase’ REALLY goes to Medicare, not the person receiving Social Security?

  8. Paul G.

    2021 cola increase is a joke evidently y’all people that come up with this junk don’t pay rent or haven’t been to a grocery store lately. Y’all say the cost of living hadn’t went up that much but yet the USDA says that it is escalated to me that don’t jive.

    • Walt

      Take your CPI complaint to the Dept of Labor!!

      • Cindy H.

        Boy you sure ARE NOT helpful at all…

  9. Kathy F.

    National cost of living is an average of 7%. We have not had a decent cost of living increase that came close to price increases across the board. Example groceries prices have more than doubled, my next purchase I’ll have to check prices on cat or dog food. WE NEED HELP!

    • Walt

      Take your CPI complaint to the Dept of Labor!!

      • BETTY G.

        walt,

        do you have a direct link to the highest honcho of dept. of labor? thanks!

        bettyg, iowa

  10. Vera L.

    it is ridiculous what they give as a raise, how is this any decent way to give back what we put in during decades.
    shameful …

    • BETTY G.

      i totally agree with you especially the most SENIOR folks living on SS benefits only with NO other retirement check coming in!!

      bettyg, iowa

Comments are closed.