Some changes are coming to Social Security in 2021 that you should definitely be aware of. Continue reading to learn more.
9. Recipients Will Get More Money
Each year the government adjusts Social Security benefits for inflation, and 2021 will be no different. The size of the adjustment varies from year to year, with some years seeing no increase at all. That being said, the Cost-of-Living Adjustment (COLA) for Social Security and Supplemental Security Income (SSI) beneficiaries in 2021 will be 1.3%.
Unfortunately for many, this increase isn’t big enough. In fact, it’s smaller than the average increase over the decade, which has been 1.52%. So, why is the COLA forecast for 2021 so low? For one thing, inflation has been low. Also, the impact of the pandemic has depressed economic activity, making inflation forecasting extremely difficult.
“Nothing is the way you’d expect it to be this year,” Mary Johnson, Social Security and Medicare policy analyst for the Senior Citizens League, told AARP.