Social Security Administration announces cost-of-living adjustment for 2021

Social Security recipients will get a modest 1.3% cost-of-living increase in 2021.

That works out to an increase of about $20 a month for the average retired worker.

It's the lowest cost-of-living adjustment since 2016, when the increase was just 0.3%. The following years the adjustment was 2.0%, 2.8% and 1.6%.

More than 64 million Social Security beneficiaries will see the adjustment starting in January 2021, while increased payments to more than 8 million Supplemental Security Income beneficiaries will begin on Dec. 31, 2020.