(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.READ MORE: Coral Springs Police: 3 Separate Crime Scenes Tied To One Suspect
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.READ MORE: Brightline Celebrates 3 Years Of Service As It Nears Orlando Extension Completion
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|