Social Security Updates for 2021

by | Jan 25, 2024 | Spousal IRA | 48 comments

Social Security Updates for 2021




A review of the annual changes to Social Security

We’ll cover:
-Cost of living adjustment
-Average benefits
-Amount required for one credit
-Bend Points
-Earnings Limit
-Maximum Taxable Wages

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2021 Changes to Social Security

As we enter a new year, there are several changes to Social Security that will impact recipients and those who are planning for their retirement. These changes are designed to ensure the long-term sustainability of the program and to provide better support for those who rely on Social Security benefits.

One of the most notable changes to Social Security in 2021 is the cost-of-living adjustment (COLA) that will increase benefits for recipients. The COLA for 2021 is 1.3%, which will result in a modest increase in monthly benefits for retirees and other Social Security recipients. This adjustment is intended to account for the rise in living expenses and to help beneficiaries maintain their purchasing power.

Another change to Social Security in 2021 is the increase in the maximum taxable earnings cap. The maximum taxable earnings for Social Security will increase to $142,800 in 2021, up from $137,700 in 2020. This means that workers who earn above this threshold will pay more into the program, which will help to support its long-term viability.

Additionally, the full retirement age for new retirees will increase in 2021. For those born in 1959, the full retirement age will be 66 and 10 months, up from 66 and 8 months for those born in 1958. This change is part of a gradual increase in the full retirement age that will eventually reach 67 for those born in 1960 or later. It is important for individuals to consider their full retirement age when planning for their retirement and deciding when to start claiming Social Security benefits.

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There are also changes to the Social Security earnings limits for those who are still working while receiving benefits. For 2021, the earnings limit for individuals who have not reached full retirement age will increase to $18,960 per year, up from $18,240 in 2020. For those who will reach full retirement age in 2021, the earnings limit will increase to $50,520, up from $48,600 in 2020. These limits help to ensure that individuals who continue working while receiving Social Security benefits do not have their benefits reduced if they earn above a certain threshold.

It is important for current and future Social Security recipients to be aware of these changes and to consider how they may impact their financial planning. Whether nearing retirement or just starting to contribute to the Social Security system, understanding these changes can help individuals make more informed decisions about their finances and retirement strategies.

Overall, the 2021 changes to Social Security are aimed at ensuring the financial stability of the program and providing better support for retirees and other beneficiaries. By staying informed about these changes and planning accordingly, individuals can make the most of their Social Security benefits and feel more confident about their financial future.

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48 Comments

  1. @garyrigdon4189

    When will we get to make to make more money and get SSI to 19,000 is a joke.Give me 5000 a month and I don't need to work.I get 15,000 a year.

  2. @Richard4616

    The point is that the government is not going to set you up to be financially set after retirement. You should save money while you are working and pay your house off before retiring. The reason that you pay taxes on SS is because you didn’t pay taxes on the amount that your employer paid into your. No one can plan for being disabled. I’m getting 1/2 percent on a certificate of deposit, so I’m loosing money because of inflation. Credit cards will eat at you wallet too. 19 percent!! Do the best you can with what you have.

  3. @loctite6267

    We had the income from mutual funds, stocks (cojoing investment account,2 people) , so the earning limit for 2021 is it will be $37,920 a year ?

  4. @louisjuarez4477

    I,was getting 935.00,now I'm getting 790.

  5. @ThePattyGates

    Mr. Carroll,, I was told that I had to apply for regular S.S from SSI this year because I will turn 62.. Stating my benefits will only go up $20 or so because I've been on since I was 35ish from Injuries and my last wages will not be counted..What ya think?

  6. @philipscoppettuolo1697

    1 3% doesnt even come close to the actual cost of living costs

  7. @philipscoppettuolo1697

    1.3% is a joke and insult cola needs to be abolished and Congress needs a new system that gives retired people at least 5% every year

  8. @debmcallister1686

    Can you tell me how to get help legally to fight the social security overpayment?

  9. @barbarathiecke2480

    I am being charged for medicare B, $149.00 starting 1/1/2021 and back pay 2 months leaving me $293 minus on my Feb 2021 check

  10. @shervisandrews610

    Would you say that 62 will be a good time to apply for Social Security

  11. @2WOLFS

    $7.34 a month increase is what I received, really I can't even pay for a ride to the doctor office with that increase….so what percentage did you say was coming?

  12. @artrunningbear3599

    This is all bullshit until Trump comes in and there will be a change, it will not be social security any more but a better safer organization

  13. @braunreinhold6020

    That's interesting because my check keeps getting smaller? I get paid in PHP direct to my bank account here. I have never received anything from SS telling me in USD so I can prove that I keep getting hosed on the exchange rate. I retired at 70, 5 years ago, when I retired I declined the disability payment because I didn't want some idiot following me around trying to discredit me.

  14. @Fee.1

    I have a question. Is it a problem if I work 40 hours a week as long as I earn under the SGA, typically?

  15. @larryadcock667

    I am not paying taxes I get SSDI I get 892a month how much should I pay

  16. @michaelwilhelm2148

    People, it is worse than you think!! Since the 18th of March until today (11/4) The US Dollar has dropped exactly 10%! That means, by definition, the cost of imported goods will be more expensive (INFLATION) than earlier this year because the dollar has been DEVALUED. Since our country has been running trade deficits (with a few exceptions) since the mid-80's (with stagnant wages that have flat-lined since 2000) , are we really surprised about the cost of goods and the cost of living??

    Because EVERYONE'S taxes are going up next year due to federal tax revenues shortfalls this year, be prepared for dollars to be sucked out of your wallet as you shake your head in disbelief! This gives new meaning to the words "money velocity." Then you have to factor in all the other money you are going to be required to pay for things like The Green New Deal, The Great Rest Agenda, Medicare for All, reparations, for the "oppressed," "free" college and university tuition for everyone, healthcare for all undocumented immigrants, and other pet projects of the Global Elite, your standard of living, by definition goes down. Money that we think we have earned and saved… nope, it is not yours. It belongs to your Federal Government!

  17. @papasmurf4199

    Does the amount if I go over include my retirement pays?

  18. @davidm7824

    Devin 1.3% is a little bit more than you expected?????? Are you F@@KED in the head???? wake up man, or do you work for the government too?????

  19. @davidm7824

    NOT ALL CROOKS ARE POLITICIANS BUT ALL POLITICIANS ARE CROOKS!!!!!!!!!!!!!!!!!!!!!!!!

  20. @davidm7824

    VOTE THEM OUT OR STOP COMPLAINING!!!!!!!! OUR ANCESTORS STARTED THIS COUNTRY, ARE WE GOING SIT BY LIKE SHEEP AND LET IT HAPPEN????? OR ARE WE ALL GUTLESS???

  21. @davidm7824

    VOTE EVERY POLITICIAN OUT OF OFFICE AND ONLY VOTE FOR HONEST PEOPLE THAT ARE FOR THE PEOPLE!!!!!!!!!
    THATS IT, PLAIN AND SIMPLE!!!!!!!

  22. @dalemcelvain1496

    My rent increased 120 dollars per month starting on Dec 2020…

  23. @danjohnston7851

    Devin, I am a 59yr old man and I have been starting to research my SS benefits. I cannot figure out when logging onto the SS website and see how much I should get, and my wife does the same to see how much she should get. My ask is will we both receive what is posted to our “My SS account” or do we get a reduced amount since we will eventually both be getting SS together?

  24. @pepper8892

    WoW! 10 dollars lol, very laughable lol

  25. @pauladelaney9829

    I read somewhere that for 1 year our raise will be a 3 percent then it will go back to the 1.3 is that correct?

  26. @woodpewee

    Hi Devin, I'd like to request your offer of a free SSA 2020 & 2021 SSI Cheat Sheet. Your programs are very informative, much appreciated and enjoyed. Thank you

  27. @cjimcook

    I find it interesting that the increase the Social Security wage base (which affects the maximum income that is taxed for SSDI) is more than twice the COLA. Why the disconnect?

  28. @barbarathiecke2480

    When you have a tight budget you notice the money difference.

  29. @hotwheel6663

    Sleepy Joe said he will not touch it.

  30. @libbieplumlee829

    How much money increase will I get on my Social security Income checks

  31. @thoracat518

    something is not better when the cost of living rises more than ours

  32. @francinabryant621

    I drow off my self I $888.00 a month I can't pay every thing so my question do I get a raise

  33. @vernonconway1469

    The Soc Sec admin should also allow benefits as at after age 55 years old. You lose your job due to cut backs and cannot get another job after one year and your unemployment benefits are about to run out. Can’t find another job,due to age discrimination. You should be able to claim benefits early and not have to wait until full retirement age?

  34. @vernonconway1469

    Plus they should end taxing Soc Sec and 401K and IRA’s.

  35. @vernonconway1469

    Seems like Medicare premiums are going up higher the COLA raises. Plus the cost of living. Medicare premiums should be reduced sense we pain Medicare taxes all our working years.
    Medicare premiums should be reduced about $35.00 monthly to give more money to live on for stimulus purpose.

  36. @tracyboatwright2784

    When you are on social security on disability or SSI it is hard to make end to meet

  37. @soniajerez8963

    they only give ppl 20 more dollars every year.

  38. @yolandahernandez6014

    When you increase SS it effects to qualify for certain medical programs! And also other bills increase because they know persons receiving SS had an increase. So it does really help .

  39. @belenvelez7028

    $28 dollars increase puts me in a high income tax bracket, it is $200 more increase annually.

  40. @darlacaves3171

    We get a increase in SSI and then our food stamp amount goes down. So, we just cannot get ahead

  41. @kimberlycarter369

    Where you getting these average benefits? My husband and I don’t receive even half of what a single person in your example gets.

  42. @dream-work-xl1068

    If I should become die will my husband receive a portion of my benefits?

  43. @redhatter127

    How about changing that you have to be married 10 years before you can collect on your ex]s social security.. I was divorced one week before ten years and can't collect on his ss.

  44. @JanulisK1

    Hello, I’m working and collecting SS retirement. I started getting SS at age 62. Does my SS amount go up due to my paying into it while working?

  45. @patriciaakans731

    The social security increase for January, 2020 was 1.6%. AND the DECREASE for January, 2021 is 1.3%!!! How can you say it’s an increase when.3% is lower than .6%??? I don’t know how people can eat healthy when an orange is $1. It’s no wonder that people are fat is because cheap food is all they can afford.
    Upset Grammie

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