WASHINGTON — If you're a Social Security or Supplemental Security Income recipient, you could earn 1.3 percent more beginning in 2021.
The Social Security Administration said Tuesday that the increase comes as a cost-of-living adjustment.
More than 64 million Social Security beneficiaries could be eligible for the increase come January 2021.
Over 8 million SSI beneficiaries will get theirs beginning on December 31.
It should be noted that Social Security and SSI benefits are different, and some people receive both.
The COLA increase is normally determined by the Department of Labor’s Bureau of Labor Statistics.
Some other yearly adjustments are based on the increase in average wages.
Under the new increase, the maximum amount of earnings subject to the Social Security tax will go up to $142,800 from $137,700.
Beneficiaries will be notified by mail starting in early December about the new amount owed to them. Most will also be able to view it online.
Social Security beneficiaries on Medicare, will not know their new amount until after the 2021 Medicare premiums are announced.
Here's a breakdown.