Social Security recipients got a 1.3% raise for 2021, compared with the 1.6% hike beneficiaries received in 2020.
Maximum earnings subject to the Social Security tax also increased—from $137,700 a year to $142,800.
Other changes for 2021 included an increase in how much money working Social Security recipients can earn before their benefits are reduced and a slight rise in disability benefits.
Social Security tax rates remain the same for 2021—6.2% on employees and 12.4% on the self-employed.
It now takes $1,470 to earn a single Social Security credit, up $60 from 2020.
Full retirement age continues to rise. Under current law, retirement age for Social Security purposes is set to increase by two months each year until it hits 67. If you turn 62 in 2021, your full retirement age is 66 and 10 months. Unless the law changes, anyone born in 1960 or later will not reach full retirement age until they are 67.7
Information from the Social Security Administration.