Every beneficiary of social security would see their monthly checks increase by 1.3% from 2021. The Social Security Administration announced this amount on Tuesday- something that fits perfectly well with the earlier estimates. Just the previous month, the Senior Citizens League- an advocacy nonpartisan group that is dedicated towards older Americans- predicted a boost of 1.3%, based on the consumer price index data. While this is definitely an increase- it might not amount to much. For, the 1.3% might not cover up the expenses that older citizens have to pay every single day- with the pandemic already spreading it a bit thin.
The next year would see the estimated average monthly benefit of retirees increasing by around $20 every single month. The total amount would go from $1543 to $1523 with an increase of 1.3%. The average monthly benefit for disabled workers would be up by $16 every month- from $1261 to $1277. Social security would be taxing the total wages in 2021 up to $142,800 which is quite a leap from $137,700 in 2020. Meanwhile, the premium for Medicare Part B for the next year hasn’t been announced yet. Interestingly, the payments for that premium is usually deducted straight from the benefit that Social Security checks that they get. But this year, legislation from the Congress has put up a limit on the amount for this premium.
The Senior Citizens League is actually trying to lobby Congress to get an emergency 3% COLA to help social security beneficiaries in 2021. It all depends on how far the calculations are done using the CPI for Urban Wage Earners.