The federal government announced on October 13, 2020, that the Social Security Cost of Live Adjustment (COLA) for 2021 will be 1.3%. This increase will provide an additional $20 per month for the average retiree. This is slightly less than the 2020 increase of 1.6% and will not keep up with the actual cost of living for seniors who depend on SS as their primary source of income.
Social Security recipients will receive a notice in the mail in early December showing their new benefit amount. Recipients will see the increase in their January 2021 payment. Those receiving SSI will see the increase on December 31, 2020.
Owners and managers of properties that are required to determine the income of residents should use the new COLA SS rate when projecting the income of applicants and residents. This also affects persons receiving SSI, VA pensions, Civil Service Pensions, and Railroad Retirement.