Social Security Cost-of-Living Adjustment for 2021
This week, the Social Security Administration announced a cost-of-living adjustment (COLA) of 1.3% for 2021, which is in line with predictions based on consumer price index data. The 1.3% increase is applicable to about 70 million Americans who receive Social Security and Supplemental Security Income benefits.
The estimated average benefit will increase by $20 per month for retirees and by $16 per month for disabled workers in 2021. The maximum amount of wages taxed for Social Security will increase by just under $5,000 in 2021.
Compared to recent years, the Social Security COLA for 2021 is a bit smaller. The bump was 1.6% for 2020 and 2.8% in 2019. In 2010, 2011, and 2016, however, the COLA was zero. Since 2010, the average adjustment has been 1.4%.
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