The Social Security Administration (SSA) just announced a slight year-over-year rise in monthly benefits for Social Security and Supplemental Security Income (SSI) recipients.
The October 13 announcement of the 1.3% hike in benefits is in line with what most Social Security watchers expected.
Here’s Your Social Security Cost-of-Living Raise for 2021
The SSA says the 1.3% cost-of-living adjustment (COLA) will begin with benefits payable to Social Security beneficiaries in January 2021. Increased payments to SSI beneficiaries will start at the end of December 2020.
#BREAKING! Approximately 70 million Americans will get a 1.3% increase in monthly #SocialSecurity benefits and #SSI payments in 2021. Check our blog later this morning for more information: https://t.co/42WeesNNHV #COLA #2021COLA pic.twitter.com/BpK20EC2av
— Social Security (@SocialSecurity) October 13, 2020
The average monthly Social Security check in June 2020 was $1,514 for retirees, according to the SSA. That means the 1.3% increase next year will translate to approximately an extra $20 in an average check each month. You can view your COLA notice online through your my Social Security account.
COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a broad measure of the price of food, energy, health care, housing, transportation and more.
In years when there is no inflation, there is no increase in benefits. However, benefits are never reduced if there’s no inflation.
Historical Cost-of-Living Adjustments From the Social Security Administration
You can see the full history of cost-of-living adjustments here.
If you have questions about Social Security or retirement, contact Clark’s free Consumer Action Center at clark.com/cac.