If you need to look at the updates and changes for 2021 then keep in mind that SSA announces changes in the month of October. This means the updates for 2021 were announced in October 2020 and if you have skipped them this is the place where you can get all the information by reading this article till the end. Below are the updates which are already announced. This data will assist you in updating your social security information.
Retirement age status
As we already know that the age of gaining retirement social
security benefits is 62. However, if you apply before 62 years then this will
reduce your payout permanently. If you
are turning 62 in 2020 then the full retirement age for you is going to be 66
years and 8 months. So, what is the existing law? The update about the full
retirement age is now increased or set to 2 months every year until you hit
67. In the case in 2021 you are turning
62 then the full age to gain retirement benefits for you is going to be 66
years and 10 months. This will continue until any change is made, any person
who is born in the year 1960 or later in time will be able to gain their
retirement SSA benefits when they will reach 67 years.
So, if you delay in gaining your social security retirement then
this is guaranteed that you are going to get more than your usual payouts. In
fact, if you are successful in waiting till 70, you will get a32% high payouts
as compared to the benefits you claim when you reach the full retirement age. After
70 there are no set parameters to delay your SSA benefits.
1.3% hike will be delivered in 2021
There are going to be seventy million SSA beneficiaries in
2021 who will be getting 1.3% COLA to their benefits. This adjustment is made for a reason and that
is it will keep pace with current inflation and this is based on CPI-W which is
calculated by the BLS. If the consumer
price index for urban wage earners and clerks increases to more than 0.1% every
coming year between the 3rd quarter of the last year and the 3rd
quarter of the current year, SS will increase benefits by a similar amount.
The 2021 bump of 1.3% is compared with the last year 2020
which was 1.6% COLA. In 2019, 2.8% was
the COLA figure which was the highest since the year 2012. The raise amount
which is 1.3% for an average social security beneficiary is going to be twenty
dollars every month on an average payout of $1,543 vs. $1,523 in the year 2020.
SS disability benefits amplified
There are approximately ten million Americans who receive
disability benefits and the payment is going to be increased for them as well
in 2021, not a big amount but a slight hike which is definitely good for the
disability beneficiaries. If you are legally blind then you will receive a
maximum amount of $2,190 which is going to be $80. For the non-blind beneficiaries,
the maximum benefits are amplified to fifty dollars which are going to be the
amount of $1,310.
Earning limits are also increased
There are many beneficiaries who are working and also
receiving social security benefits at the same time and if you are among them
then there are chances that you’re entire or a part of your social security benefits
might be withheld temporarily, depending upon your earnings. However, the
income limits are slightly increased for the current year.
Prior to reaching full retirement age, beneficiaries are
allowed to earn up to $18,960 in the year2021. After this limit, one dollar
will be deducted from the SS benefits for every two dollars that surpasses the
limit. According to the2021 yearly limit, it can be seen a $720 hike over
the2020 limit of $18,240. If you are going to be 62 in 2021 then you can earn
up to $50,520, up to $1,920from the 2020 yearly limit of $48,600. For every
three dollars, you can earn to the 2021 limit, your SS benefits going to be
reduced by one dollar, however, that is only applicable to income earned in the
months prior to reaching the full social security retirement age. When you will
reach full retirement age then no perks will be withheld even if you decide to
earn.
Utmost taxable earnings rose to $142,800
In the year 2020, it was important for the employees to pay
social security tax amount of 6.2% on income of $137,700. If you earn above it
then it is not subject to tax. In the year 2021, the amount of tax is the same
at 6.2% and it is 12.4% for those who are self-employed, but the income cap is amplified
to $142,800.
The other side is that at the maximum taxable earnings are
increased and so the earning amounts which are utilized to calculate the
retirement benefits by the social security administration. In the year2020, the
monthly social security maximum benefit for the retiring workers at the time of
full retirement age was$3,011. In the
year 2021, the maximum advantages increased by $137 every month to $3,148.
Social security beneficiaries cab receive a thirty-two
percent larger payout every month if they wait till the age of 70 rather than claiming
them immediately they reach their full retirement age.
The credit earning threshold goes up it is important for you to earn forty credits at least if you were born in the year 1929 which means 4 credits in maximum every year. You have to earn these credits over your working life to be qualified for the social security benefits. The sum it takes to earn a sole credit goes up somewhat every year. For the year 2021, it will take $1,470 in earnings per credit, up sixty dollars from 2020. The credit number which is required to receive disability social security benefits will depend upon your age at the time you suffered from the disability.
