Navigation Cost-of-Living Adjustment for 2021
In October 2020, Social Security Administration announced a 1.3% benefit increase for 2021. This cost-of-living adjustment (COLA) will be effective for Title II beneficiaries of a period of disability and disability insurance benefits for December 2020 benefits that are payable in January of 2021. For SSI beneficiaries, the cost-of-living adjustment will be made for January 2021 but paid on December 31, 2020.
The average Social Security benefit will increase by $16 per month from $1,261 to $1,277. For SSI recipients, the federal maximum will increase from $783 to $794 a month for individuals and from $1,175 to $1,191 for couples. The changes to Medicare premiums have not yet been announced.
The threshold for substantial gainful activity (SGA) will also increase in 2020. In order to be eligible to apply for and receive disability benefits, a person must be unable to engage in substantial gainful activity. A person who is earning more than a certain monthly amount is ordinarily considered to be engaging in SGA. The threshold for SGA will increase from $1,260 a month for the non-blind and $2,110 a month for the blind to $1,310 a month for the non-blind and $2,190 a month for the blind.
