The Social Security Administration has announced a 1.3 percent increase in benefits in 2021.
The average monthly benefit of $1,523 in 2020 will go up by $20 a month to $1,543 a month for an individual beneficiary, or $240 yearly.
Also increased is the the maximum amount of earnings subject to the Social Security tax, this amount, $142,800 is up from last year [$137,700]. This means you'll pay less taxes.
Supplemental Security Income (SSI) payment standards are increased to $794 for an individual and $1,191 for a couple.
Generally, when SS income increases occur, Medicare Part B premiums rise. However, the Trump administration ensured that the Short-Term Spending Bill [passed last month] limits the increase to just 25 percent of what it would normally have been. [example - if the increase was expected to be $8.00, 2021 increase should only be $2]
However, keep in mind that Joe Biden states he will eliminate this savings and increase Medicare premiums drastically to cover his "Medicare for all" agenda.
Most beneficiaries will be able to find out their specific cost-of-living adjustment online by logging on to my Social Security in December 2020. While you can still receive your increase notice by mail, you have the option to choose whether to receive your notice online instead of on paper.
For more on the 2021 Social Security benefit levels, click here.