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Social Security is a vital link in the well-being and support of millions of Americans. Many count on it as a primary source of income during their later years.
President Trump has long promised to protect the SS benefits for senior Americans. And during his first 4 years in office, he did just that.
While America is waiting for the outcome of the 2020 election, there are some changes coming in 2021.
From New Retirement:
Every year Social Security announces a Cost of Living Adjustment (COLA) for Social Security benefits. Over the last 40 years, benefit increases have been as high as 14.3% and as low as zero.
In 2019 benefits increased by 2.8%, and in 2020 the benefits increase was 1.6%.
Due to low inflation, this year the Social Security Administration announced the boost for 2021 is a modest 1.3%. That will result in an average increase of about $20 a month for the 70 million seniors who collect benefits.
For 2021, Social Security beneficiaries can count on seeing an increase in their payments by 1.3%. That will result in about a $20 a month boost, on average, in their SS checks.
Does that not sound like a lot to you? That kind of increase can mean a lot to many. And it can add up over time.
But the fact that it is increasing less and less each year could be a problem for many.
Many Americans feared losing their benefits or seeing a decrease in payments. And it’s true, many financial experts considered whether it was necessary to cut benefits.
Even some of Trump’s advisors said he should scale back SS benefits. But instead, Trump is making sure they get an increase, even during trying times.
He frequently promised to protect that program and it looks like he’s made good on that promise.
What do you think about the Social Security COLA adjustment this year?
Source: New Retirement