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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Latisha L.
Hello I need assistance trying to recover my moms social security she is deceased my name is latisha my number is 7542043456
Vonda V.
For your security, Latisha, 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 contact 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.
Joy M.
Question I am now receiving my SS benefit and am still working. I pay into FICA and Medicare. When I quite working will they go back and re look @ my history and do any adjusting to my benefit since I am still paying in.
Vonda V.
Hi Joy, thanks for using our blog. 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 January 2020. Check out our web page Receiving Benefits While Working for additional details.
What s.
Why are you letting people’ Piggy back’ and use other people’s social security numbers? This is all your fault and identity theft is rampant especially by those who don’t need to but do it just to screw people up. The law firm of Hunter allen in ATL GA sells Social security numbers and you know it and you don’t have a degree anywhere and are not on a bad ID but can’t even type a letter but Ginsburg told you to let people steal ss # just to screw people up and I am going to make it stop. What Say Yee.
Wayne K.
What date does the increase become effective?
Vonda V.
Hi Wayne, thanks for using our blog. The 1.3 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2021. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2020. (Note: some people receive both Social Security and SSI benefits) We hope this is helpful!
jim h.
Is medicare going to lay an increase on us again and take back any thing we might gain from this huge raise we will be getting,I have to take in account of everything that increases my cost of living,not just,did the price of beans go up in price,plus medical cost have gone through the roof.
Vonda V.
Hi Jim, thanks for using our blog. Information about Medicare changes for 2021, when announced, will be available at http://www.medicare.gov. We hope this helps!
Glenda S.
Need to see if there is anything else there is to help me get more money. I only get $700 a month and I am raising 2 of my grandkids we are having a hard time making it.
Vonda V.
Thanks for your question, Glenda. We do not pay caregivers. However, you may be eligible to receive social services from the state in which you live. These services include free meals, housekeeping help, transportation, or help with other problems. You can get information about services in your area from your state or local social services office. You can also visit the U.S. Department of Health and Human Services web page for more information. Thanks.
Arthur J.
Getting into my account is frustrating and cannot figure this mess out!
Debora
That is not a very big raise considering some of the seniors were left out of the 1200.00 money from covid
James E.
I want more
James W.
I would like to receive the information on the increase of benefits for 2021 for Social Security Disability
Vonda V.
Hi James, 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 will increase 1.3 percent in 2021. For more details about the new COLA, visit our Cost-of-Living Adjustment information page.