WASHINGTON (WJW) – Social Security and Supplemental Security Income (SSI) benefits will increase 1.3 percent in 2021, the Social Security Administration announced Tuesday.
The average retiree will get a $20 increase per month.
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.
Retirees’ estimated average monthly benefit will increase by $20 per month, to $1,543 from $1,523 after the 1.3% increase, according to analysis from CNBC. Disabled workers’ average monthly benefit is estimated to go up by $16 per month, to $1,277 from $1,261.
Social Security and SSI beneficiaries will be notified by mail starting in early December about their new benefit amount.
For Social Security beneficiaries receiving Medicare, Social Security will not be able to compute their new benefit amount until after the Medicare premium amounts for 2021 are announced.