Which Months Are Vital For Social Security Beneficiaries And Why?


Thousands of Social Security beneficiaries, who depend on the SS benefits for the maximum income but they do not tend to have too much financial wiggle scope. Why? The reason is that those benefits from Social Security only replace about 40 percent of the pre-retirement income of the earner’s average wage. However, there are lots of seniors who want more money to maintain a comfortable standard of living. But the reality is that several seniors rely greatly on Social Security because they do not have any other income source and it is these seniors who tend to anticipate a substantial COLA (Cost-of-living adjustment) every year as they hope to enhance their financial status.

The motive of COLA is to assist those seniors with Social Security to keep their buying power during inflation. The prices of common goods and services become higher, at that time, senior citizens need an increment so that they can avoid falling behind. However, COLAs are being calculated automatically, this is why they are not completely assured. It has been seen in previous years that there were 3 years where senior SS beneficiaries got no raise at all.


Unluckily, SS recipients may need to prepare for a repeat of that set-up for the coming year- either that or a trifling raise. This current year, there are 3 months, which will explain how much of a raise seniors may get in the upcoming year i.e. 2021. These months are:

  • July
  • August
  • September

The reason explained why these months are crucial

It is to be noted that the COLAs related to Social Security are being calculated according to the data gathered from the CPI (Consumer Price Index) for Urban Wage Earners & Clerical Workers. The data particularly collected throughout the 3rd quarter of the year i.e. July through September is being used to calculate the COLAs. When the current year’s 3rd quarter is made accessible, then the comparison will take place. After that, the data of CPI-W from the previous year’s 3rd quarter will be compared with the current year’s 3rd quarter data.

If there will be an increase in the CPI-W reading of this year as compared to the last year, then it would be good for SS beneficiaries. They will be going to receive a COLA. They will be able to get the exact amount of which will pivot on how much of a boost is recorded. The chances are half because there may be no increase in the readings of the current year’s 3rd quarter than the previous year. In this case, SS beneficiaries may get bad news because they will not be able to see a great increase in Social Security at all. Appreciatively, that’s the worst thing that may take place --- those SS benefits cannot be reduced from one year to the next.

Here comes the reason for explaining why these 3 months are very much important for senior citizens who are already paid SS taxes from their earnings. It is due to the fact that these seniors may be waiting for extra income desperately. But unluckily, as it is cleared from facts that we cannot expect a raise in the coming year, 2021.

It has been seen in the CPI-W data collected during the month of January to June would not count towards the calculation of the next years’ Cost-of-living Adjustment. There has been a great reduction in the prices of many common goods including gasoline and many more. At the same time, there has been an immense increase in food prices. This is why it is not adequate to pay off for reduced prices across the board.

As this is the time of Covid-19, the recession has occurred in every country. Due to these Covid-19 crises, the cost of services and common goods has gone down. It is the basic concept of economics when the demand goes down, the prices follow suit. In this pandemic time, almost different services are going to open up for customers slowly and slowly. This is the reason why customers are eagerly waiting for their favorite services to open up so that they can start spending their money in the coming months and buy their favorite stuff. The crisis of money or income insecurity will not place a great impact on their choices of investing their money after the opening of different shops and malls.

So, Social Security beneficiaries who are also seniors need support from Social Security to a great extent. They want the best possibility to occur. They tend to receive the same benefit they collect on a monthly basis in the New Year as they want to see this continuity in the coming year as well.

According to the Social Security Administration, the COLAs every year take place in the month of October. They give an announcement in this month. So, what we have in our hands is the info that confuses us whether or not a SS raise in 2021 is completely off the table and it is just a few months before the announcement of the annual COLA. This is the time when the SS beneficiaries can get prepared for that undesired news, which may be good or bad. The coming months will tell only what will be the next for senior citizens.

Look online

The Covid-19 crisis has given us many losses already. It will be a puzzling thing for us whether we will get the most out of Social Security due to a boost in Social Security or deal with the same losses. It has become a great topic of discussion among seniors in the USA because they have more demands to overcome. There may be the latest updates on a Social Security raise. This is why we should be in constant touch with the Social Security Administration moves and it can be done by referring to their official website. Don’t waste your time, just look online for more latest updates regarding the best time of the year for Social Security beneficiaries.