The 2020 SSDI payment increase was 1.3 percent

In 2020, people receiving Social Security Disability Insurance (SSDI) saw their monthly payment go up by 1.3 percent. This increase, called a Cost of Living Adjustment (COLA), happens most years to help benefits keep pace with inflation. The 2020 raise was smaller than some years because inflation itself was low.

If you were receiving SSDI in December 2019, your January 2020 payment reflected this increase automatically. You did not have to do anything to receive it. The Social Security Administration (SSA) applies COLA to all SSDI payments at the same time each year.

The exact dollar amount of your raise depended on what you were receiving before the increase. Someone getting $1,000 per month would have received an additional $13. Someone getting $1,500 would have received about $20 more.

Key Takeaways

  • The 2020 COLA raised SSDI payments by 1.3 percent, applied automatically in January 2020.
  • Your specific dollar increase depended on your payment amount before the raise.
  • COLA happens because the cost of living changes each year, and the SSA adjusts payments to reflect that.
  • You can find your exact 2020 payment amount in your Social Security statement or by calling 1-800-772-1213.

How COLA is calculated each year

The SSA uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to decide whether payments go up and by how much. This index measures how much prices change for things people buy—food, housing, transportation, medical care. If prices rise, COLA goes up. If prices stay flat or fall, there is no COLA that year.

The SSA looks at the CPI-W from July, August, and September of one year and compares it to the same three months the year before. The percentage change becomes the COLA for the following year. In 2020, that comparison showed a 1.3 percent increase.

This means COLA is not decided by the government or by SSA staff—it is a mathematical result based on actual price data. Some years the number is higher (2008 was 5.8 percent), some years it is lower (2016 and 2017 had no COLA at all), and some years it falls in between.

When the 2020 increase took effect

The 2020 COLA became part of your payment starting in January 2020. If you received your SSDI check on the third Wednesday of the month, your January payment included the 1.3 percent raise. If you received payments by direct deposit, the increase appeared in your account on the same schedule.

You received a notice in the mail before January showing your new payment amount. This notice, called a Social Security Benefit Statement, listed your old monthly amount and your new monthly amount side by side so you could see the difference.

Why 2020's raise was smaller than some years

The 1.3 percent increase in 2020 was one of the smaller COLA adjustments in recent history. This happened because inflation was low during the summer and fall of 2019. Prices for food, gas, and other goods were not rising as fast as they had in previous years.

By contrast, 2008 had a 5.8 percent COLA because prices were rising much faster that year. In 2016 and 2017, there was no COLA at all because prices actually fell slightly. The COLA amount changes based on what is actually happening in the economy, not on a fixed schedule.

How to find your 2020 payment information

You can see what your SSDI payment was in 2020 and how much it changed by looking at your Social Security Statement. You can view this online by creating an account at ssa.gov, or you can call the SSA at 1-800-772-1213 and ask them to mail you a copy.

Your statement shows your payment history month by month, so you can see exactly what you received in January 2020 compared to December 2019. If the numbers do not match what you remember receiving, write down the dates and amounts and call the SSA to ask about the difference.

You can also check your payment records through your bank or financial institution if you receive payments by direct deposit. Your bank statement will show the exact amount deposited each month.

COLA and your other benefits

If you receive Supplemental Security Income (SSI) in addition to SSDI, or if family members receive benefits based on your SSDI record, they also received the 2020 COLA increase. The 1.3 percent raise applied to all Social Security payments across the board.

If you are also receiving Medicare, the COLA does not affect your Medicare premium directly. However, your SSDI increase may have affected how much you pay for Part B premiums if you are subject to income-related adjustments. Contact Medicare at 1-800-MEDICARE if you have questions about how your premium changed.

Frequently Asked Questions

Did everyone on SSDI get the same dollar amount increase in 2020?

No. Everyone got a 1.3 percent increase, but the dollar amount depended on what you were receiving before. Someone getting $500 per month received about $6.50 more, while someone getting $2,000 per month received about $26 more. The percentage is the same; the dollars are different.

What if I did not see the increase in my January 2020 payment?

Call the SSA at 1-800-772-1213 and ask them to review your payment history. It is possible there was a change to your case at the same time—a medical review, a work activity, or a change in your living situation—that offset the COLA. The SSA can explain what happened to your specific account.

Does COLA happen every year?

COLA happens most years, but not always. If inflation is zero or negative, there is no COLA that year. This happened in 2016 and 2017. When there is a COLA, it takes effect in January and applies to all Social Security and SSI payments.

Can I find out what next year's COLA will be?

The SSA announces the next year's COLA in October, based on the summer price data. You can find the announcement on ssa.gov or by calling 1-800-772-1213. The COLA does not take effect until January of the following year.