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Social Security Benefits Increase in 2021
By Erin Thompson
Social Security Public Affairs Specialist in Toledo, OH
Guest Column
Nearly 70 million Americans will see a 1.3 percent increase
in their Social Security benefits and SSI payments in 2021.
Federal benefit rates increase when the cost-of-living
rises, as measured by the Department of Labor’s Consumer
Price Index (CPI-W).
The CPI-W rises when inflation increases, leading to a
higher cost-of-living. This change means prices for goods
and services, on average, are a little more expensive, so
the COLA helps to offset these costs.
January 2021 marks other changes that will happen based on
the increase in the national average wage index. For
example, the maximum amount of earnings subject to Social
Security payroll tax in 2021 will be higher. The retirement
earnings test exempt amount will also change in 2021. You
can read our press release for more information at
www.ssa.gov/news/press/factsheets/colafacts2021.pdf.
We will mail COLA notices throughout the month of December
to retirement, survivors, and disability beneficiaries, SSI
recipients, and representative payees. Want to know your
new benefit amount sooner? You can securely view and save
the Social Security COLA
notice online via the Message Center inside
my
Social Security in early December without waiting
for the mailed notice.
If you don’t have an account yet, you will have to create
your account by November 18, 2020 to receive the COLA notice
online this year.
my
Social Security account holders can opt out of
receiving a mailed COLA notice and other paper notices that
are available online. You can choose text or email alerts
when there is a notice in Message Center by updating your
Preferences at
www.ssa.gov/myaccount/opt-out.html
so you always know when we have something important for you.
Be the first to know! Sign up for or log in to your
personal account today at
www.ssa.gov/myaccount.
Choose email or text under “Message Center Preferences” to
receive courtesy notifications. This way you won’t miss
your online COLA notice!
You can find more information about the 2021 COLA at
www.ssa.gov/cola.
Get Your New Standardized Benefit Verification Letter Online
If you receive a Benefit Verification letter, sometimes
called a "budget letter," a "benefits letter," a "proof of
income letter," or a "proof of award letter," we have good
news for you! A new standardized Benefit Verification
letter is now available when you need proof of Social
Security benefits, Supplemental Security Income, or
Medicare.
In addition to name, date of birth, and the benefits
received, the new Benefit Verification letter includes other
identifiers to prevent misuse and fraud. This is an added
benefit to you as proof of income for loans, housing
assistance, mortgage, and other verification purposes.
The same standardized letter is also available if you need
proof that you do not receive benefits, or proof that
benefits are pending. If you are an individual
representative payee, you can use the
my
Social
Security Representative Payee portal to access
the same standardized Benefit Verification letter online for
your beneficiaries.
This new standardized Benefit Verification letter is another
example of our commitment to improve our service to you.
No matter how you request your letter, whether calling our
National 800 Number, your local office, the Interactive
Voice Response system, or online with your personal
my Social Security
account at
www.ssa.gov/myaccount,
the Benefit Verification letter now contains a seamless
look.
Social
Security and Small Businesses
According to the U.S. Small Business Administration, about
30 million small businesses in the United States employ tens
of millions of people. Running a small business can be a
24-7 endeavor. Managing employees, inventory, scheduling,
services, and marketing can be challenging.
If you’re a small business owner, or you work for one, we
can help make your life easier with our suite of services.
Our business services allow you to file W-2/W-2Cs online and
verify your employees’ names and Social Security numbers
against our records.
If you run a business, make us your first stop
at
www.ssa.gov/employer.
It will save you valuable time when you need
information on W-2s, electronic filing, and verifying Social
Security numbers. Small business owners can also take
advantage of our Business Services Online at
www.ssa.gov/bso/bsowelcome.htm.
You must register to use this free service, which also
offers fast and secure online W-2 filing options to
Certified Public Accountants, enrolled agents, and
individuals who process W-2s and W-2Cs.
For more information about electronic wage reporting, please
read our publication at
www.ssa.gov/pubs/EN-05-10034.pdf.
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