Social security beneficiaries will see their monthly check increase by 1.3% in 2021.
The amount was announced by the Social Security Administration on Tuesday and was in line with previous estimates.
Last month, the Senior Citizens League, a non-partisan advocacy group for older Americans, projected a 1.3% increase, based on available data from the Consumer Price Index.
The 1.3% increase isn’t necessarily good news for retirees and other beneficiaries, many of whom may have had a harder time stretching their benefit checks in 2020, thanks to Covid-19.
A 1.3% increase is smaller than the 1.6% increase in benefits that retirees and other beneficiaries saw in 2020. In 2019, they received a 2.8% increase in their monthly checks.
But it is more important than those of some years. In 2010, 2011 and 2016, the COLA was zero. In 2017, it was 0.3%.
The average cost of living adjustment since 2010 is 1.4%. Between 1999 and 2009, annual increases averaged 3%.
The change is calculated using the Consumer Price Index for Urban Salaried and Office Workers, or CPI-W.
This is a developing story. Please come back for updates.