Social Security recipients will get $20 more each month in 2021
Social security and disability benefits are set to increase 1.3% over the next year, with the average monthly benefit increasing by $ 20 from $ 1,523 to $ 1,543, according to the Social Security Agency.
The increase explains the rise in inflation and is calculated by assessing the change in the consumer price index from the third quarter of 2019 to the third quarter of 2020.
Read more: Social Security, Medicare, and Retirement: How They Work
The 64 million Americans who receive regular Social Security benefits will increase as of January 2021. The increased payments for the 8 million Americans who receive Additional Safety Income (SSI) will begin on December 31, 2020.
The SSA will inform the beneficiaries by post at the beginning of December about the increased benefit amount. You can also check out the new amount online using your personal social security account.
Two generations of real US military veterans grown up. On the left, a 93-year-old military veteran from the US Army from World War II and the US Air Force with Korean conflict smiles at the camera, while his son-in-law on the right - a 65-year-old military veteran of the US Navy seaman Vietnam War - is. teases him - tries to distract him by telling jokes during the photo shoot. They both wear generic gift shop military veteran baseball-style memorial hats.
For employees, the maximum amount of income that is subject to social security tax also increased from $ 137,700 to $ 142,800. This also comes into force in January.
The SSA uses the consumer price index for urban wage earners and office workers, or CPI-W. This is a monthly measure of the average change over time in the prices that urban wage earners and office workers pay for a basket of consumer goods and services.
Read More: Read More: How To Make Your Retirement Plan Recession Proof
While CPI-W has long been the traditional measure of determining this increase in performance, experts - as well as presidential candidate Joe Biden - have advocated the CPI-E, the consumer price index for the elderly, based on the expenditure of adults 62 years. This burdens health spending more and is rising faster than the CPI-W.
The Bureau of Labor Statistics also calculated that medical services increased 5% and home care costs increased 4% over the past year. The increase in performance may not be sufficient to offset these increases in costs.
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Dhara is a reporter for Yahoo Money and Cashay. Follow her on Twitter at @Dsinghx.
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