2021 Social Security Cost-of-Living-Adjustment
Up-Date: Social Security Cost-of-Living-Adjustment
Unfortunately estimates are projecting only a 1.3% annual (COLA) for 2021. If this is approved, it will be the smallest in about 3 years.
In 2017 the COLA was only 0.3%, but since there have been higher annual increases.
Medicare Premium 2021
Unfortunately, if/when Medicare increases premiums for Part B in 2021, that could actually outpace the increase for the COLA.
Nearly 3/4 of Medicare beneficiaries are protected by the Hold Harmless law, which adjust Part B premiums in order to prevent a reduction to the net Social Security Benefit.
As of 2020, single-taxpayer beneficiaries on Social Security with an adjusted gross income, or MAGI, of $87,000 fall under the Hold Harmless law, while married joint filers with $174,000 fall under the law. The MAGI is based on 2018.
We will publish up-dates as more information comes in.