2021 Changes for Social Security
Last week, Annuity Alliance discussed some of the changes that will happen to affect retirement planning account in 2021. We touched on how the CARES Act gave some relief to RMDs and also withdrawals from retirement accounts for consumers aged 50 and under.
This week, we are going to discuss a few other changes for 2021 to Social Security that could affect some consumers based on being in their retirement years or planning for retirement.
For 2021, retirees that qualify for Social Security will see a 1.3% cost-of-living adjustment (COLA) with the average retirement payment gaining $20 per month from 2020. The maximum monthly benefit rose $137 to $3,148 for workers at full retirement age (66 years, 2 months for people born in 1955; 67 for those born in 1960 or later).
Even with the COLA happening, some retirees may see lower increases due to other factors such as receiving benefits before full retirement age and possible Medicare premiums being deducted from their monthly checks. Medicare Part B monthly premiums raised to $148.50 ($3.90 increase in 2021).
We hope you will find this information useful. As always, please consult with your tax professional as we are sharing these updates as educational and information only.