The Social Security Administration announced Tuesday that the cost-of-living adjustment for retirees receiving Social Security benefits would increase by only 1.3 percent in 2021, the second year in which adjustments had been lower than the year before.  COLA adjustments have varied widely each year, from no increase announced in 2015 to a 14.3 percent increase in 1980. In the past two decades, COLA increases have only twice gone above four percent.

Military veterans will also see an increase to some of their benefits based on the COLA increase.  Last month, lawmakers approved plans to link a cost-of-living increase in veterans’ benefits with the annual Social Security boost. Under current law, Congress must approve the veterans’ benefits increase each year, while Social Security beneficiaries see the boost automatically.

Veterans benefits covered include disability compensation, compensation for dependents, clothing allowances, and dependency and indemnity compensation checks.

Social Security beneficiaries should be notified of their new benefit amount starting in early December, though most recipients should be able to view that notice via their online Social Security accounts.

Source: Military Times, Deputy Editor Leo Shane - October 13, 2020