2021- Social Security Changes Tax Increase of 3.7% and 1.3% Benefit Increase
The Social Security Administration (SSA) has announced the changes for 2021. The Maximum Social Security wage base has increased by 3.7% ($142,800 from $137,700 in 2020) Of the changes reported the SSA is giving a 1.3% Cost of Living Adjustment (COLA) for the new year. An increase in the full retirement age by an additional two months ( to 66 years and 10 months) for people born in 1959. Higher taxes for retirees who are high earners, and increased maximum benefit payouts to $3,148/month from $3,011 in 2020. A 3.7% higher increase in the wage base will subject an estimated