COLA Announced at 1.3% for 2021

Picture of a woman unpacking groceries in her house

People with disabilities who receive SSDI or SSI will soon see their payments increase. 72 million Social Security and Supplemental Security Income recipients will see a 1.3% cost-of-living adjustment (COLA) to their monthly benefits beginning January 1st, 2021, an increase even smaller than last year’s. In 2021, the monthly federal SSI payment standard will be $794 for an individual and $1,191 for a couple.

The COLA change also affects the maximum amount of earnings subject to the Social Security tax, which will increase from $137,700 to $142,800. The change comes from an annual automatic cost-of-living adjustment, known as COLA, tied to inflation. By law, SSDI and SSI benefits increase when there is a rise in the Consumer Price Index from the US Department of Labor’s Bureau of Labor Statistics.

The 1.3% increase is similar to last year’s 1.6% increase but much smaller than the 2.8% rise in 2019. The average monthly benefit for individuals of $1,523 in 2020 will go up by $20 a month or $240 yearly.

In some cases in the past, a small increase meant that additional income would be entirely taken by higher Medicare Part B premiums.This year, however, shouldn’t be the case. The standard monthly premium for Medicare Part B is forecast to increase $8.70 a month to $153.30. Due to the COVID-19 pandemic, under the terms of the short-term spending bill, the increase for 2021 will be limited to 25% of what it would otherwise have been.

Most beneficiaries will find out their cost-of-living adjustment online by logging on to my Social Security in December 2020. While SSI and SSD recipients can still receive their increase notice by mail, they’ll have the option to choose whether to receive their notice online instead of on paper.

Let The Disability Attorneys of Michigan Help

For 20 years, Disability Attorneys of Michigan has helped the disabled of Michigan obtain the Social Security Disability Benefits they deserve. If you or a loved one are unable to work due to a physical, mental or cognitive impairment, call Disability Attorneys of Michigan now for a free consultation at 800-949-2900.


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I will never forget you and the hard work you did to secure my Social Security Disability benefits. Thank you!

- Christine C.