Robert Kneschke / ShutterstockAfter the 1.3 percent increase, retirees’ estimated average monthly benefit will increase from $1,523 to $1,543 in 2021. (Robert Kneschke / Shutterstock)
The Social Security Administration announced Tuesday that Social Security beneficiaries will see a 1.3 percent increase to their monthly checks in 2021.
The cost-of-living adjustment will start with benefits payable to over 64 million Social Security beneficiaries in January 2021, the administration said in a news release.
The increased payments will start Dec. 31, 2020, for 8 million beneficiaries.
The annual COLA increase is tied to the Consumer Price Index determined by the Department of Labor’s Bureau of Labor Statistics.
The COLA affects the personal finances of 1 in 5 Americans, including Social Security recipients, disabled veterans and federal retirees, according to CBS News.
The Senior Citizens League, a nonpartisan advocacy group for older