Social Security Announces 1.3% Benefit Increase for 2021

The United States Social Security Administration announced a 1.3% benefits increase, effective December 31, 2020. The increase is being implemented as a cost-of-living adjustment (COLA).

The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $142,800. The earnings limit for workers who are younger than "full" retirement age (see Full Retirement Age Chart) will increase to $18,960. ($1 is deducted from benefits for each $2 earned over $18,960.) The earnings limit for people reaching their “full” retirement age in 2021 will increase to $50,520. ($1 is deducted . . .