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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Kenneth H.
Better increase would be to stop taxing our benefit because our spouse works. Ludicrous…plain and simple. Our spouse’s affairs are seperate as to contributions from day one. But after we begin collecting our benefits we get hammered. Why!
Barbara R.
What will our medicare benefits go up to? Will it be as much as our increase?
V.V.
Hi Barbara, thanks for using our blog. Information about Medicare changes for 2021, when announced, will be available at http://www.medicare.gov.
Rebecca F.
Were notices of new benefit amounts sent out today by email?
V.V.
Hi Rebecca, thanks for using our blog. We will mail COLA notices throughout the month of December to retirement, survivors, and disability beneficiaries, SSI recipients, and representative payees. If you would like the notice, sooner, you can securely view and save the Social Security COLA notice online via the Message Center inside your my Social Security account in early December without waiting for the mailed notice. If you don’t have an account, create one today. We hope this helps!
Mary B.
So, what will the increase in Medicare be in 2021?
V.V.
Hi Mary, thanks for using our blog to ask your question. Information about Medicare changes for 2021, when announced, will be available at http://www.medicare.gov.
Nancy R.
I could log in if ya’ll put password rules where i could see them.
Donald C.
10% would fit better,then just maybe we would have something to work with.!
Alsna
They need to use RENT and MORTGAGE as the basis for COLA
Not things that effect no one. A lot of seniors and disabled people can barely make ends meet, this country treats them as if they just want us all to die and get out of their hair. This whole country just went to hell 9 months ago, Remember? Food costs have doubled, and you expect people to scrap by.
Don S.
So This Just Mean’s It Will Be Taken From Us By The Medicare, and Other Ins.
James C.
Why is the increase so small?
V.V.
Hi James, thanks for using our blog. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics. The Social Security Act provides for how the COLA is calculated. To read more, please visit http://www.socialsecurity.gov/cola. We hope this helps!
Cindy H.
Boy you sure ARE NOT helpful at all…