C.O.L.A. for Social Security in 2021…

[LFC Comments: When we consider the ever increasing property taxes, and inflationary pressures, and the impact to state revenues, seniors living on fixed income are going to be in a real bind!]


Social Security Announces 1.3% COLA For 2021, One of Lowest Ever Paid

October 21, 2020

Social Security recipients will receive an annual inflation boost of just 1.3% in 2021.  The increase is so small, it’s one of the lowest on record.  The 2021 cost of living adjustment (COLA) will increase the average retiree $1,523 benefit by about $20 per month to $1,543.  That increase is expected to be significantly offset, or even completely consumed, by rising Medicare Part B premiums.

The COLA was just 1.6% in 2020 and, over the past 11 years, COLAs have been at unprecedented lows, averaging just 1.4% since 2010.  That’s less than half the 3% that COLAs averaged from 1990 to 2009.

This minimal growth in Social Security benefits has had the biggest financial impact on the Social Security income of the group of the older retirees who retired in 2009 or before.  That group has seen little increase in net Social Security benefits for 11 years.  The flat growth in benefits means that younger retirees since 2009 have wound up receiving less Social Security income than they may otherwise have been counting on for future benefits, because the level of their initial benefits is not growing.

Why is the COLA so low?  A major reason has to do with whose “market basket” the government is using to measure inflation and calculate the annual adjustment.  Under current law, that market basket belongs to younger working adults under the age of 62 who aren’t retired.  The Social Security COLA is determined by the percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Categories: Uncategorized

10 replies

  1. 123270 632840Extremely exceptional info can be identified on weblog . 749072

  2. 286800 897111you could have an perfect blog appropriate here! would you prefer to make some invite posts on my weblog? 825337

  3. Bseb Inter Registration Independent School Interview Questions Uk

    Feel free to visit my web blog … best books

  4. 937873 252486Top rated lad speeches and toasts, as well toasts. may possibly really well be supplied taken into consideration creating at the party consequently required to be a bit more cheeky, humorous with instructive on top of this. finest man speeches funny 235397

  5. I’d must examine with you here. Which isn’t one thing I often do! I take pleasure in reading a post that will make individuals think. Also, thanks for permitting me to remark!

  6. 485870 702007The other day, while I was at work, my sister stole my iPad and tested to see if it can survive a 40 foot drop, just so she can be a youtube sensation. My iPad is now destroyed and she has 83 views. I know this is totally off topic but I had to share it with someone! 84775

  7. 40867 582316This internet internet site is often a walk-through rather than the details you wanted about it and didnt know who ought to. Glimpse here, and you will certainly discover it. 890975

  8. 303607 575116Good post. I be taught one thing much more challenging on entirely different blogs everyday. It will all the time be stimulating to learn content material from other writers and apply slightly 1 thing from their store. Id desire to use some with the content material on my blog whether you dont mind. Natually Ill give you a hyperlink on your net weblog. Thanks for sharing. 182071

  9. DreamProxies – Lowest priced USA Private Proxies: Elite superior quality, Infinite bandwidth, 1000 mb/s superspeed, 99,9 uptime, Non continuous IP’s, Not any consumption polices, An array of subnets, USA or maybe The eu proxies – Obtain At this time – https://DreamProxies.com

Leave a Reply

Your email address will not be published.

%d bloggers like this: