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Cost-of-Living Adjustment (COLA) Information for 2021

by Casaundra Johnson | Nov 06, 2020 | Social Security and Disability Compensation

On October 13, 2020, Social Security announced that there will be a 1.3 percent cost-of-living adjustment (COLA) for 2021. According to the Social Security Administration, approximately 70 million Americans receiving Social Security and Supplemental Security Income (SSI) will see their benefits increase as of January 2021. This means the maximum SSI payment will increase to $794 per month which is an $11 increase over the current maximum of $783 per month. SSI recipients should see an increase in their monthly checks as of January 1, 2021.

 

For Social Security Disability Insurance (SSDI) beneficiaries, the cost-of-living adjustment means their current monthly benefit will increase by 1.3 percent. For someone who is currently receiving $1,261 per month in SSDI benefits, the 1.3 percent increase means an extra $16 per month for a total monthly benefit of $1,277, before any applicable offsets or deductions such as Medicare premiums and workers’ compensation offsets. Social Security will send you a letter with your new benefit amount in December 2020 either by regular mail or through mySocialSecurity online account.

 

Open enrollment for Medicare started on October 15, 2020 and ends on December 7, 2020. Information about costs for each Medicare plan is now available online at medicare.gov. If you have questions or concerns about how the 2021 COLA increase will impact your Medicare costs, you should contact Medicare as soon as possible.

 

Under federal law, the cost-of-living adjustments to the VA’s compensation and pension rates are the same percentage as for Social Security benefits, meaning VA disability benefits will also increase by 1.3 percent for the 2021 calendar year. While the VA has not published the 2021 Rate Tables yet, disabled veterans should expect an increase in their monthly benefits as of January 2021. Disabled veterans are encouraged to check the VA’s website (va.gov/disability/compensation-rates/veteran-rates/) periodically for updates on the official 2021 disability compensation rates. If you or a loved one needs support with securing Social Security Disability Insurance Benefits, contact the Social Security Lawyers near you at The Bainbridge Firm.

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