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Social Security Announces 1.3% COLA for 2021

The Social Security administration announced today (10/13/2020) that Social Security benefits will increase by 1.3% for 2021.

Press Release | Press Office | SSA

While this is better than I had expected earlier in the year (after COVID, and the official inflation of nearly zero in the early months), I already know that my Medicare Part D (drug) plan’s premium will increase by 8% for 2021.  I haven’t yet heard about the increase in my Medicare Supplement Plan premium, nor has Medicare yet published the standard Part B premium amount for 2021, but the dollar amount of my SS COLA for 2020 (which was 1.6% over the 2019 SS benefits) was just enough to cover the increases in my Part B, Part D, and Medicare Supplement premiums, with nothing left over for the increased costs of other necessities.

If you know your Part D and Medicare Supplement premiums for 2021, how do the increases compare to the Social Security increase for 2021?  Will the dollar amount of your SS COLA cover the increases in your medical insurance premiums, and leave something over for other cost-of-living increases, such as food?

Near the bottom of the press release I linked to, there’s a further link to a “Fact Sheet” that announces the Increases in the maximum amount of earnings subject to the Social Security tax, the maximum earnings one can have, if receiving SS retirement benefits before one’s Full Retirement Age, before your SS benefits will be reduced, and similar adjustments for other important numbers.

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