Social Security checks to increase by 1.3% in 2021

Editor
0 0
Read Time1 Minute, 21 Second


Social Security checks to increase by 1.3% in 2021

(CNN) — Come January 2021, the roughly 70 million people who receive Social Security will see a 1.3% increase in their benefit payments to account for the rising cost of living, the Social Security Administration announced Tuesday.

That means the average monthly check for retirees will increase by $20 to $1,543, the agency said. However, the extra $20 a month for many seniors on low fixed incomes may not go as far they need, given the rising cost of groceries and other expenses as a result of the pandemic.

Meanwhile, the average monthly check for those receiving Social Security disability benefits will rise by $16 to $1,277.

The maximum Social Security check retirees can receive every month — if they start collecting benefits at their full retirement age — will go up by $137 to $3,148. The retirement age is now 67 for those born in 1960 or later.

The agency also announced new taxable income thresholds on which American workers will owe the 6.2% Social Security payroll tax.

Starting next year, the first $142,800 of one’s wages will be subject to that tax, up from $137,700 currently.

For those who are self-employed, they would owe 12.4% in payroll taxes up to that amount because they would owe both the employee (6.2%) and the employer (6.2%) portions of the payroll tax. But they will get to deduct the employer portion on their federal income taxes.

The-CNN-Wire
™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

Permalink| Comments



Source link

About Post Author

Editor

Editor is WebTech Group (WTG). WTG is a web hosting, design, SEO, press release distribution company and news agency located in St. Louis, Missouri. Site is owned and operate multiple news sites in the region. Our objective with STLNewsMissouri.com is to offer readers a one-stop news site for Missouri news. We aggregate news from news media across the state. We do not aggregate news from all sources. We pick from those that offer RSS feeds and pick the best with eliminating those that might produce the same news stories, written differently.
Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleppy
Sleppy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %
Next Post

Marek Locmelis: geosciences rock star

What do flood-water contamination, mineable platinum deposits and the trigger for human life on Earth have in common? Answer: Marek Locmelis, Missouri S&T geosciences researcher. Locmelis is an economic geologist with expertise in geochemistry, petrology, planetary evolution and analytical chemistry. His current research spans a variety of topics. In a 2019 […]