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Social Security and Supplemental Security Income (SSI) announces a benefit increase for 2021. Approximately 70 million Americans will benefit from the 1.3% increase in COLA(The cost-of-living adjustment) the Social Security Administration (SSA) announced last week. The SSI beneficiaries will begin to receive their benefits from 31st December 2020.
The 1.3% Bump For 2021 Is Lower
The 1.3% bump for 2021 is lower, by 0.3% than last year’s 1.6% COLA. For the average Social Security recipient, the 1.3% raise amounts to a $20 per month increase, raising the average monthly payout to $1,543 for 2021 from $1,523 in 2020. In the past several years, the adjustment has ranged from 0% to 2.8%, according to Social Security Administration data.
Retirees Should Plan Their Financials To Cope With The Rising Living Costs
The increase doesn’t add up to much, and retirees will need to stay ahead of rising living costs and the financial impacts of the coronavirus in other ways. Getting Medicare or Health Insurance is a good way for retirees to prepare in advance for constantly rising healthcare costs.
The average retiree received a benefit of $1,514 in June 2020, meaning that the average retiree can expect to see an increase of about $20 per month.