Here’s how your Social Security cost-of-living adjustment is calculated – and what it could look like in 2021
People line up outside the Social Security Administration office in San Francisco.Getty ImagesIf you collect Social Security benefits, you're probably already eagerly waiting to see what your cost-of-living adjustment will be next year.New, early estimates from The Senior Citizens League, a nonpartisan senior group, point to a possible 1.5% COLA increase for 2021.In 2020, Social Security recipients got a 1.6% increase. For retired workers, that meant their average monthly benefit increased to $ 1,503 per month, up from $ 1,479 per month.Meanwhile, Social Security COLAs have averaged 1.4% in the past decade.How those adjustments are calculatedThe Social Security Administration generally announces its COLA in October for the following year.The amount is calculated based on the percentage cha...
