Social Security and Supplemental Security Income (SSI) benefits will increase by 1.3 percent in 2021.
In total, approximately 70 million Americans will receive the cost-of-living adjustment for 2021. More than eight million SSI beneficiaries will begin receiving increased payments on Dec. 31, 2020. Social Security recipients will begin receiving the increased benefits in January 2021; the Social Security Administration (SSA) estimates that more than 64 million individuals will benefit from the increase.
According to figures provided by the SSA, 45.8 million of the total number of individuals receiving Social Security benefits are retired workers, as of June 2020. These individuals as a whole receive approximately $69.4 billion in benefits. Their 3.1 million dependents receive around $2.4 billion as a whole. On average, these individuals receive $1,514 per month.
Disabled workers and their dependents receive an average of $1,259 per in Social Security benefits on average.
Based on the average monthly Social Security benefits, a retired worker can expect roughly $20 in increased payments.
The 2021 increase is the agency’s lowest increase since 2017, when the cost-of-living increase was only 0.3 percent. The most recent increases were 1.6 percent in 2020, 2.8 percent in 2019 and 2 percent in 2018. However, there were two years in the past decade with no cost-of-living increases: 2016 and 2011.