SOCIAL SECURITY PAYMENTS WILL INCREASE IN 2021.

The average person getting SSI or SSDI will get about a $20 raise in January.

Each year, the Social Security Administration reviews the national economy to see whether a Cost of Living Adjustment (COLA) is needed for those receiving benefits.  This usually results in a small increase in payments to Social Security recipients.  

The increase for 2021 will be 1.3 percent.  For a person receiving $1,500 per month in 2020, the check will increase to $1,519.50.

The idea behind COLA is to help keep up with inflation so that the purchasing power of benefits is not diminished.  Some call this "inflation proofing" of Social Security.

Here is a related question we often get:  "I began receiving disability benefit before I was full retirement age.  When I become retirement age will my benefits increase?" The answer is no.  When a person becomes disabled, Social Security awards their retirement benefits early in the form of disability payments. When the beneficiary turns full retirement age (usually about 66 and one-half), the benefit converts to a retirement benefit but the amount stays the same.  A beneficiary won't notice the change.  The payment simply comes out of a different Social Security trust fund, but for exactly the same amount.

Generally, the benefit you begin with is the benefit that stays with you. The only increase you get will be the annual Cost of Living Adjustments (COLA).