Social Security benefits will see a 1.3% increase in 2021

Every month of October, the Social Security Administration (SSA) communicates the annual changes to the cost of living (COLA) for the Social Security benefits for the coming year. The adjustments will take effect in January 2021.

Throughout the years, the Social Security benefits have increased by as much as 14.3 percent and in 2020, recipients got a cost of living increase of 1.6 percent. However, for 2021, the SSA announced that the Social Security benefits will only increase by 1.3 percent due to low inflation. This means that the average monthly benefit of the approximately 70 million Americans who collect them will only increase by $20 per month, to $1,543 from $1,523.