Social Security Announces Cost of Living Increase for 2021

Social Security Announces Cost of Living Increase for 2021

Taylor Potts is an attorney with the local law firm of Gold, Khourey & Turak and primarily helps individuals with their Social Security Disability claims. He has a special interest in helping local veterans obtain their VA Disability benefits. Taylor has completed formal training and education through the U.S. Department of Veteran Affairs and is recognized as an accredited representative for Veterans, Service members, dependents and survivors. He can be reached at (304) 845-9750.

Social Security has announced the amount and effective dates of its cost of living adjustment (COLA) for 2021.  While some form of cost of living adjustment (COLA) occurs almost every year, the exact amount and time frame of effective dates can vary.  For instance, in 2019 the cost of living adjustment was 2.8 percent, which was the highest increase in nearly a decade.  In 2020, the COLA was only 1.6 percent.

For 2021, unfortunately, the cost of living adjustment for Social Security benefits is only 1.3 percent.  However, given everything that has gone on and all the uncertainty we have experienced throughout 2020, we should feel fortunate that the Social Security Administration has enacted a cost of living adjustment similar to last year.

This cost of living adjustment will take effect across all Social Security benefits, but not necessarily at the same time.  For the purpose of Disability Insurance benefits, the increase in payment will take effect for the January 2021 payment that will be received in February 2021.

Supplemental Security Income (SSI) is treated slightly different.  For SSI, the payment increase takes effect the last day of 2020, or December 31.  This means the increase for the cost of living adjustment will be reflected on the January 2021 check, or the first check received in 2021.  You should pay close attention to your 2021 payments and make sure the Social Security Administration has increased your payment by the appropriate amount to reflect the COLA.

If you have considered applying for some form of Social Security Disability benefit and not sure where to start, we can help.  Don’t wait any longer and continue to miss out on benefits that you deserve.  Contact GKT at (304) 845-9750 for your free consultation.  Home, weekend, and evening appointments are available, and there’s never a fee until we win benefits for you.  We look forward to hearing from you.

Attorney Blogs and News