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Social Security Administration Announces Benefits Increase for 2021

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The Social Security Administration announced Tuesday that Social Security beneficiaries will see a 1.3 percent increase to their monthly checks in 2021.

The cost-of-living adjustment will start with benefits payable to over 64 million Social Security beneficiaries in January 2021, the administration said in a news release.

The increased payments will start Dec. 31, 2020, for 8 million beneficiaries.

The annual COLA increase is tied to the Consumer Price Index determined by the Department of Labor’s Bureau of Labor Statistics.

The COLA affects the personal finances of 1 in 5 Americans, including Social Security recipients, disabled veterans and federal retirees, according to CBS News.

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The Senior Citizens League, a nonpartisan advocacy group for older Americans, also estimated a 1.3 percent boost based on the BLS data, CNBC reported.

After the 1.3 percent increase, retirees’ estimated average monthly benefit will increase from $1,523 to $1,543 in 2021.

The average monthly benefit for disabled workers will increase from $1,261 to $1,277.

Based on the increase, the Social Security taxable maximum will also increase from $137,700 to $142, 800, according to the Social Security Administration.

Do you think this will be enough in 2021?

The 1.3 percent cost-of-living adjustment is smaller than the adjustment retirees and other beneficiaries saw in 2020 and 2019.

In 2019, they received a 1.6 percent increase, and in 2019, they received a 2.8 percent increase.

However, the increase is larger than the 0 percent increase beneficiaries saw in 2010, 2011 and 2016 as well as the 0.3 percent increase in 2017.

The average cost-of-living adjustment since 2010 has been 1.4 percent.

In the face of the coronavirus pandemic, Social Security beneficiaries have had a tougher time stretching their benefit checks, according to CNBC.

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The Senior Citizens League is asking Congress for an emergency 3 percent COLA to help beneficiaries in 2021.

“We are looking at a period where there are growing inadequacies in Social Security benefits, particularly for people with lower-to-middle benefits,” Senior Citizens League analyst Mary Johnson told CBS News.

The COLA is only part of the annual financial calculation for seniors; Medicare’s “Part B” premium is expected to be announced this fall as well.

“There’s a lot of uncertainty with regard to the effect of the coronavirus on the cost of the premium for next year,” Casey Schwarz from the Medicare Rights Center advocacy group said.

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Erin Coates was an editor for The Western Journal for over two years before becoming a news writer. A University of Oregon graduate, Erin has conducted research in data journalism and contributed to various publications as a writer and editor.
Erin Coates was an editor for The Western Journal for over two years before becoming a news writer. She grew up in San Diego, California, proceeding to attend the University of Oregon and graduate with honors holding a degree in journalism. During her time in Oregon, Erin was an associate editor for Ethos Magazine and a freelance writer for Eugene Magazine. She has conducted research in data journalism, which has been published in the book “Data Journalism: Past, Present and Future.” Erin is an avid runner with a heart for encouraging young girls and has served as a coach for the organization Girls on the Run. As a writer and editor, Erin strives to promote social dialogue and tell the story of those around her.
Birthplace
Tucson, Arizona
Nationality
American
Honors/Awards
Graduated with Honors
Education
Bachelor of Arts in Journalism, University of Oregon
Books Written
Contributor for Data Journalism: Past, Present and Future
Location
Prescott, Arizona
Languages Spoken
English, French
Topics of Expertise
Politics, Health, Entertainment, Faith




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