Tampa, FL (Law Firm Newswire) November 30, 2020 - According to the Social Security Administration, more than 70 million Americans receive Social Security and Supplemental Security Income. The purpose of these benefits is to provide a reliable source of income for retired workers and the disabled. Due to inflationary pressures, the Social Security Administration adjusts the maximum amount of benefits each year. This is referred to as a cost-of-living adjustment.
Recently, the Social Security Administration announced that the cost-of-living adjustment for 2021 will be 1.3 percent. This year’s increase is lower than last year’s which was 1.6 percent, and is one of the lowest adjustments in history. For the average retired worker, the adjustment will increase their annual benefits by about $240.
According to the Social Security Administration, the cost-of-living adjustment is used to ensure that the value of Social Security benefits is not “eroded by inflation.” Adjustments are based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Worker, looking from the third-quarter of last year to the third-quarter of this year.
The cost-of-living adjustment will begin to take effect for recipients of Social Security in January 2021. For recipients of Supplemental Security Income, the increase in benefits will occur in December of this year.
In addition to the cost-of-living adjustment, the Social Security Administration is implementing a few other changes, including:
* The maximum earnings that are subject to the Social Security tax will increase to $142,800
* The earnings limit for workers who receive benefits before their “full retirement age” will increase to $18,960
* The earnings limit for workers who reach “full retirement age” in 2021 will increase to $50,520
Florida social security and disability attorney, David W. Magann, reminds those receiving Social Security benefits of the importance of searching out and obtaining all available government benefits. As mentioned above, this year’s cost-of-living adjustment is one of the lowest in history, providing recipients with a paltry $20 in additional benefits per month. For many, this will hardly make a noticeable difference, especially given the challenges many are facing due to the ongoing effects of the COVID-19 pandemic.
Attorney David Magann is a Florida social security and disability attorney with extensive experience handling the legal issues that many aging individuals face. Attorney Magann is a compassionate advocate who unceasingly pursues the interests of his clients, and provides practical advice and counsel on a variety of legal issues, including social security disability, estate planning, veterans’ law and personal injury law. Attorney Magann has offices conveniently located in Brandon and Tampa. He can be reached at http://www.floridasocialsecurity.com/.
David W. Magann, P.A.
156 W. Robertson St.
Brandon, FL 33511
Call: (813) 657-9175
4012 Gunn Highway #165
Tampa, Florida 33618