06 Nov Increase to Social Security for 2021 (1.3%)
Recent news has broken out from the Social Security Administration that an increase is coming for Social Security benefits in 2021. This increase will be 1.3% and will help benefit those who are interested in Social Security benefits as well as those interested in Supplemental Security Income. These increased benefits will become available to those eligible for Social Security during January of 2021.
`For those reliant on Supplemental Security Income, these will begin on the last day of 2020, so the 31st of December. An important note to add is that the taxable maximum had been raised as well. This increase is$5,100 higher from the previous limit and the new limit sits at $142,800.
Those who are recipients of these benefits will be receiving notifications and emails informing them about all the new benefit changes and the amounts they are able to receive towards the ending days of this year. You may also be able to read about the changes being implemented by logging in to your Social Security account online on the SSA website.
Numbers To Know
For 2021, if you have not yet reached your full retirement age (FRA), $18,960 is the threshold or income limit in which you can not surpass. If you are to go over this limit, unfortunately your benefits will be receiving a cut. On the bright side, for 2021 the limit for each year has been set to $50,520 for those who will be reaching their full retirement age. This is a 166% increase in comparison to those who are not reaching their FRA.
With that in mind, if you are to exceed this limit and go over the limit set in place, for every three dollars over the limit your benefits will be cut by one dollar. This used to be for every two dollars over the limit, your benefits were cut by one dollar. This is not to fear though, your income limit is much higher and way more manageable to deal with.