Social Security benefits for approximately 70 million Americans will get a 1.3 percent Cost of Living increase in 2021, the Social Security Administration announced last week.
How much does that amount to?
About $20 per month for the typical single, according to Social Security. That’s enough to buy lunch for you and a friend at a fast casual restaurant once a month, assuming no deductions for taxes. The average monthly Social Security benefit will hit $1,543 in January 2021, once the Cost of Living increase is in place.
For retired couples, that will amount to a monthly increase of an estimated $33.
Here’s other important Social Security updates:
For working Americans, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase from $137,700 to $142,800.
If you are under Full Retirement Age, you could lose benefits if you earn working income over $18,960 (up from $18,240 in 2020) and claim benefits.
Questions about Social Security? Talk to your advisor.