The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $142,800. (Note: some people receive both Social Security and SSI benefits).
The economic fallout from the virus reduced tax collections for Social Security and Medicare. For Social Security beneficiaries receiving Medicare, Social Security won't be able to compute their new benefit amount until after the Medicare premium amounts for 2021 are announced.
Larson supports passage of the Social Security 2100 Act, under which annual increases would instead be based on a "Consumer Price Index for the Elderly" that better reflects the amount seniors pay for certain necessities.
The Social Security Act provides for how the COLA is calculated. Previous Social Security COLAs have ranged from zero in 2010, 2011 and 2016 to 14.3% in 1980. Most people who receive Social Security payments will be able to view their COLA notice online through their personal my Social Security account.
For some examples of how the changes may affect them, see the fact sheet from the Social Security Administration. That amount generally increases, so at least some of any additional Social Security raise goes to health care premiums.
The average monthly Social Security check in June 2020 was $1,514 for retirees, according to the SSA.
Once you turn your full retirement age, there is no penalty for working and collecting Social Security benefits at the same time, and your benefit is recalculated to give you credit for your continued earnings and any benefits that were withheld in the past.
The earnings limit for people reaching their "full" retirement age in 2021 will increase to $50,520.
The Social Security Administration (SSA) just announced a slight year-over-year rise in monthly benefits for Social Security and Supplemental Security Income (SSI) recipients. Those with an older full retirement age also have less opportunity to increase their Social Security payments via delayed claiming.