Once again, it’s that time of year. The time of year when Aiello Law Group announces the latest cost of living adjustment (COLA) increase that will hopefully improve the lives of more than 72 million Social Security disability insurance (SSDI) and Supplemental Security Income (SSI) recipients across the country in 2021. As we’ve explained before, COLAs essentially reflect annual inflation rates documented by the U.S. Department of Labor’s Bureau of Labor Statistics’ official Consumer Price Index – and this year that increase amounts to 1.3%!
What Does This Mean For You?
For individuals receiving SSI, this means that staring January 1st, 2021, the monthly federal payment will rise to approximately $794; meaning couples will see their benefits increase all the way up to $1,191. Of course, that’s not all. COLA changes can also impact how much a recipient can earn before their income is subjected to Social Security taxes as well, which is why for 2021 that amount has been raised from $137,700 to $142,800.
How Do These Figures Compare To Last Year?
While last year saw a COLA adjustment of 1.6%, it’s important to remember that that figure was a massive drop from the year before that, 2019, which saw an increase of 2.8%. In 2021’s case, you’ll at least see average monthly benefits for those persons earning $1,523 in 2020 increase by as much as $20 per month, or $240 annually.
What Does A Smaller Increase Mean For Your Premiums?
Long ago, a smaller increase could mean greater frustrations with Medicare Part B premium costs. In 2021 though, you really shouldn’t have to worry about any of that. Monthly premium costs for Medicare Part B are expected to increase by only $8.70 for a grand total of $153.30. Plus, in accordance with the short-term spending bill, any increases for 2021 have to be limited to only 25% of what they likely would have been.
How Do You Find Your COLA?
Looking for your unique COLA figures so you can see exactly what to expect for next year? Log onto your Social Security anytime in December 2020 to find out. Or, you can sign up to receive your notices of COLA adjustments by mail if that is easier for you. Just remember, if you ever have any cost of living questions, or concerns about your benefits, our legal team at Aiello Law Group will always be around to offer you the comprehensive services and support your deserve! Call us, today, at 313.964.4900 or fill out the form in the sidebar or on our contact page, and learn more about how we can help you.