(CBS Local)- The Social Security Administration announced Tuesday that benefits for about 70 million Americans will increase by 1.3% in 2021. The increase in benefits is a cost-of-living adjustment that will begin in January of the new year.
The Social Security Act ties the annual cost-of-living adjustment increases to the Consumer Price Index, which is determined by the Department of Labor’s Bureau of Labor Statistics.
Most Security and SSI beneficiaries will be able to view their cost-of-living adjustment notice online through their personal My Security account. In order to create an online account, beneficiaries can go to www.socialsecurity.gov/myaccount.
For more information on how the cost-of-living adjustment increases are calculated, visit www.socialsecurity.gov/cola.
Provided by the SSA, other important information for the 2021 year is as follows.
The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes.
|Maximum Taxable Earnings|
|Social Security (OASDI only)||$137,700||$142,800|
|Medicare (HI only)||No Limit|
|Quarter of Coverage|
|Retirement Earnings Test Exempt Amounts|
|Under full retirement age||$18,240/yr.
|NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.|
|The year an individual reaches full retirement age||$48,600/yr.
|NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.|
|Beginning the month an individual attains full retirement age||None|
|Social Security Disability Thresholds|
|Substantial Gainful Activity (SGA)|
|Trial Work Period (TWP)||$ 910/mo.||$ 940/mo.|
|Maximum Social Security Benefit: Worker Retiring at Full Retirement Age|
|SSI Federal Payment Standard|
|Individual||$ 783/mo.||$ 794/mo.|
|SSI Resource Limits|
|SSI Student Exclusion|
|Estimated Average Monthly Social Security Benefits Payable in January 2021|
|All Retired Workers||$1,523||$1,543|
|Aged Couple, Both Receiving Benefits||$2,563||$2,596|
|Widowed Mother and Two Children||$2,962||$3,001|
|Aged Widow(er) Alone||$1,434||$1,453|
|Disabled Worker, Spouse and One or More Children||$2,195||$2,224|
|All Disabled Workers||$1,261||$1,277|