Author: US Social Security Administration (i): Contact: www.ssa.gov
Published: 2020-10-13
Table of contents and important points:
The US Social Security Agency announced that Social Security and Supplementary Insurance (SSI) incomes for Americans should increase 1.3 percent in 2021.
Most people who receive social security payments can view their COLA notice online through their personal account for my social security.
The Social Security Act binds the annual COLA to the increase in the consumer price index as determined by the Labor Statistics Office of the Ministry of Labor.
Main digestion
United States Social Security and Supplementary Insurance (SSI) benefits for approximately 70 million Americans will increase 1.3 percent in 2021, the US Social Security Agency announced today (10/13/2020).
- The 1.3 percent cost of living adjustment (COLA) begins with benefits paid to more than 64 million social security recipients in January 2021.
- The increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2020 (Note: some individuals receive both Social Security and SSI benefits.)
- The Social Security Act binds the annual COLA to the increase in the consumer price index as determined by the Labor Statistics Office of the Ministry of Labor.
Some other adjustments that take effect in January of each year are based on the increase in average wages. Because of this increase, the maximum amount of income that is subject to Social Security tax (taxable maximum) increases from $ 137,700 to $ 142,800.
Social security and SSI beneficiaries are usually notified of their new benefit amount by post from the beginning of December.
Most people who receive social security payments can view their COLA notice online through their personal account for my social security. People can create or access my Social Security account online at www.socialsecurity.gov/myaccount
Information on Medicare changes for 2021 will be available at www.medicare.gov when announced
For Social Security beneficiaries receiving Medicare, Social Security will not be able to calculate their new benefit amount until 2021 Medicare premium amounts are announced.
The final benefit amounts for 2021 will be communicated to the benefit recipients in December via the COLA notification sent by post and the message center of my social security.
Fact Sheet: 2021 US Social Security Changes
U.S. Cost of Living Adjustment (COLA)
Based on the rise in the consumer price index (CPI-W) from the third quarter of 2019 to the third quarter of 2020, beneficiaries of social security and supplementary safety income (SSI) will receive a COLA of 1.3 percent for 2021.
Other important information about social security 2021:
| tax rate | 2020 | 2021 |
|---|---|---|
| Employee | 7.65% | 7.65% |
| Self-employed | 15.30% | 15.30% |
NOTE: The 7.65% tax rate is the combined tax rate for Social Security and Medicare. The social security contribution (OASDI) is 6.20% of income up to the applicable maximum taxable amount (see below). The Medicare portion (HI) is 1.45% of all income. As of January 2013, individuals with incomes greater than $ 200,000 ($ 250,000 for married couples filing together) will pay an additional 0.9 percent of Medicare taxes. The tax rates given above do not include 0.9 percent.
| 2020 | 2021 | |
|---|---|---|
| Maximum taxable income | ||
| Social Security (OASDI only) | $ 137,700 | $ 142,800 |
| Medicare (HI only) | No limit | |
| Quarter of coverage | ||
| $ 1,410 | $ 1,470 | |
| Exempt amounts for the retirement test | ||
| Under full retirement age | $ 18,240 per year ($ 1,520 month) |
$ 18,960 per year ($ 1,580 per month) |
| NOTE: One dollar of benefits is withheld for every $ 2 of income over the limit. | ||
| The year in which a person reaches full retirement age | $ 48,600 per year ($ 4,050 month) |
$ 50,520 per year ($ 4,210 month) |
| NOTE: Applies only to income for months prior to reaching full retirement age. One dollar of benefits is withheld for every $ 3 of income over the limit. | ||
| At the beginning of the month, a person reaches full retirement age | None | |
| 2020 | 2021 | |
|---|---|---|
| Social security disability thresholds | ||
| Significant employment activity (SGA) | ||
| Not blind | $ 1,260 a month | $ 1,310 a month |
| Blind | $ 2,110 a month | $ 2,190 a month |
| Trial period (TWP) | $ 910 month | $ 940 month |
| Maximum Social Security Benefit: Employee who retires at full retirement age | ||
| $ 3,011 month | $ 3,148 a month | |
| SSI Federal Payment Standard | ||
| Individually | $ 783 month | $ 794 month |
| Pair | $ 1,175 a month | $ 1,191 a month |
| SSI resource limits | ||
| Individually | $ 2,000 | $ 2,000 |
| Pair | $ 3,000 | $ 3,000 |
| SSI student expulsion | ||
| Monthly limit | $ 1,900 | $ 1,930 |
| Annual limit | $ 7,670 | $ 7,770 |
| Estimated Average Monthly Social Security Benefits to be paid in January 2021 | ||
| Before 1.3% COLA | After 1.3% COLA | |
| All retirees | $ 1,523 | $ 1,543 |
| Aged couple, both receive benefits | $ 2,563 | $ 2,596 |
| Widowed mother and two children | $ 2,962 | $ 3,001 |
| Old widow (he) alone | $ 1,434 | $ 1,453 |
| Disabled worker, spouse and one or more children | $ 2,195 | $ 2,224 |
| All disabled workers | $ 1,261 | $ 1,277 |
(i) Source / Reference: US Social Security Administration. Disabled World makes no guarantees or warranties in connection therewith. Content may have been edited for style, clarity, or length.
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Journal: Disabled World. Language: English. Author: US Social Security Administration. Electronic publication date: 2020-10-13. Last revised date: 2020-10-13. Reference title: “Increase in COLA performance by 1.3% for 2021 | Social security”, Source: Increase in COLA performance by 1.3% for 2021 | Social insurance. Summary: The US Social Security Agency announces that Social Security and Supplementary Insurance Income (SSI) for Americans will increase 1.3 percent in 2021. Retrieved on December 11, 2020 from https://www.disabled-world.com/disability/social- security / usa / 2021cola.php – reference category number: DW # 121-13892.
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