Social Security Administration Announces Meager 1.3% COLA Increase for 2021
The Social Security Administration announced on Tuesday that its annual cost-of-living adjustment (COLA) will be 1.3 percent in 2021, which means an average $20 boost in retirement benefits per month. This year’s COLA is the smallest since 2017 and slightly under the 1.4% average over the past decade.
“The members of the Alliance are disappointed and angry that Social Security beneficiaries will receive a paltry 1.3% benefit increase,” said Richard Fiesta,Executive Director of the Alliance in a statement. “While any COLA is better than nothing, 1.3% is not nearly enough to keep up with the escalating cost of prescription drugs and other expenses seniors have to spend their money on.”
He noted that at least 16% of seniors who work have lost their job due to the coronavirus pandemic, making Social Security a larger portion of their income.