Will Social Security Disability Increase in 2021?
The Social Security Administration recently announced a 1.3% benefit increase for Social Security and Supplemental Security Income (SSI) recipients beginning in January 2021. The annual cost-of-living adjustment (COLA) reflects an overall increase in the Consumer Price Index, which is calculated yearly by the Department of Labor’s Bureau of Labor Statistics.
Find out everything you need to know about the 2021 SSDI COLA increase and how it may affect your finances next year with this rundown from Social Security DIsability Advocates USA.
Who Is Eligible for the 2021 COLA Benefits Increase?
Cost-of-living adjustment benefit increases will be made available to the following beneficiaries beginning in January 2021:
- Those receiving Social Security retirement benefits
- Those receiving Supplemental Security Income
- Those receiving Social Security Disability Insurance benefits
This includes all retired workers, widows and widowers, and disabled workers, plus their spouse and children.
How Much of An Increase Is 1.3%, Anyway?
Compared to the past two years, the 2021 SSDI COLA increase is on the low end, but it still beats out other years in which many people faced economic hardship, such as 2010, 2011, and 2016, when there was no COLA increase at all.
From month to month, you may not notice a huge jump in your disability benefits amount. For example, the average disabled worker received a monthly payment of $1,261 in 2020. In January 2021, the same worker can expect their monthly benefits to increase to $1,277. This provides the average disabled beneficiary with an additional $192 per year.
On the other hand, the maximum monthly benefit for disabled workers in 2020 is $3,011. These beneficiaries will receive a slightly more substantial addition of $469 per year, or an extra $39 per month, with a total of around $3,480 in annual benefits in 2021.
What Other Changes Are Coming to the SSA in 2021?
The 2021 SSDI COLA increase isn’t the only thing changing in the Social Security Administration in 2021.
Maximum Earnings Subject to Social Security Tax
Beginning in January 2021, the maximum amount of annual earnings subject to Social Security taxation will increase from $137,700 to $142,800. This is based on an overall increase in average wages. If you are still working and earned more than the maximum in any year, the SSA will only take into consideration the maximum taxable earnings figure to determine your benefits.
Trial Work Periods
In 2020, disabled individuals were allowed to earn up to $910 a month during a trial work period. In 2021, this amount will increase to $940 a month. Earnings of more than $940 a month may be considered substantial gainful activity (SGA), so those who are working part-time on disability should be aware of this change.
How Can I Maximize My Monthly SSDI Benefits?
If you’re thinking about applying for disability benefits or need information about the SSDI appeal process during the coronavirus pandemic, legal help is available to assist you in getting the maximum possible monthly benefit for you and your family.
Contact our Social Security disability lawyers by calling 602-952-3200. We’ll schedule a free consultation to help you navigate the process of filing for disability and what to do if your claim is denied. Have questions? Representatives are standing by via LiveChat to answer them. You can also request your free case review by filling out this simple form.
