Estate Planning

2021 Increase In Social Security Cost of Living

Social Security is a lifeline for over 64 million people or more than 1 in 6 U.S. residents. With their monthly checks, they can pay their mortgage or rent, purchase food, and take care of other life necessities without having to worry about working a full-time job anymore.

Thankfully, there was recently an increase in Social Security for 2021 that could be even more of a help for those who receive benefits.

2021 Social Security Increases

As of 2021, about 70 million Americans saw a 1.3% increase in their Social Security benefits, as well as Supplemental Security Income (SSI) payments. This is because when the cost of living goes up, so do Social Security benefits. The Social Security Administration uses data from the Department of Labor’s Consumer Price Index (CPI-W) to determine when to make increases based on the rising costs of goods and services. If recipients did receive an increase, the SSA should have notified them and it would have been reflected in their payments.

Additional Changes to Social Security This Year

The SSA announced other changes based on the national average wage index increase. The maximum amount of earnings subject to Social Security payroll tax this year has gone up. The retirement earnings test exempt amount changed as well.

To find out alerts from the SSA regarding updates, you can always sign up for or log into your My Social Security account online at https://www.ssa.gov/myaccount.

Contacting an Attorney

If you need help applying for Social Security, you can contact the estate planning attorneys at Legacy Law Group in Eastern Washington, Spokane Valley, and Spokane itself. Get in touch with us at (509) 315-8087.