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 from benefits for each $3 earned over $50,520 until the month the worker turns “full” retirement age.) There is no limit on earnings for workers who are “full” retirement age or older for the entire year.
Social Security is the term used for the Old-Age, Survivors, and Disability Insurance (OASDI) program in the United States, run by the Social Security Administration. Social Security is an insurance program. Workers pay into the program, typically through payroll withholding where they work. While best known for retirement benefits, it also provides survivor benefits and disability income. It is independent of a lump-sum pension. There are currently more than 64 million Social Security beneficiaries who will benefit from the increase in January 2021.
This was reported by U.S. Social Security Administration on October 1, 2020.
Contact information: Mark Hinkle, Acting Press Officer, Social Security Administration, 440 Altmeyer Building, 6401 Security Boulevard, Baltimore, MD 21235; 410-965-8904; E-mail: firstname.lastname@example.org; Web Site: www.ssa.gov