Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 1.3% in 2021, the Social Security Administration (SSA) announced Wednesday, Oct. 14.
The cost-of-living adjustment will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2021. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2020.
Some other adjustments that take effect in January of each year account for the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax will increase to $142,800 from $137,700. Learn more.