Yes, SSDI payments increased in 2020, but the raise was smaller than in previous years

Social Security cost-of-living adjustments (COLAs) happen once a year, usually in January. In 2020, the COLA was 1.7 percent. That means if you received $1,000 a month in December 2019, you received $1,017 in January 2020.

The 1.7 percent raise was lower than the 2.8 percent increase in 2019 and the 2 percent increase in 2018. The size of each year's raise depends on inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). When inflation is low, the COLA is low. When inflation is high, the COLA is higher.

If you were receiving SSDI in January 2020, the raise happened automatically. You did not have to do anything or contact Social Security to receive it.

Key Takeaways

  • SSDI payments increased by 1.7 percent in January 2020 as part of the annual cost-of-living adjustment.
  • The COLA amount changes each year based on inflation and is set by a formula Social Security uses, not by Congress or any agency decision.
  • The 2020 raise was smaller than raises in 2018 and 2019 because inflation was lower in 2020.
  • If you were on SSDI in January 2020, you received the raise automatically without having to request it.

How the COLA is calculated each year

Social Security calculates the COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers. This index measures the cost of goods and services that people buy—food, gas, housing, medical care, and others. If the cost of these things goes up, the index goes up. If costs stay flat or drop, the index stays flat or drops.

In October of each year, Social Security looks at how much the index changed from the third quarter of the previous year to the third quarter of the current year. That percentage becomes the COLA for the following January. The formula is the same every year, and Social Security announces the COLA in October so people know what to expect.

Congress does not vote on the COLA each year. It is set by the formula in the Social Security law. The only way to change how the COLA works would be for Congress to change the law itself.

Why 2020's raise was smaller than other years

The 2020 COLA of 1.7 percent was lower than 2019's 2.8 percent because inflation slowed down. Prices for many goods and services rose more slowly in 2019 and early 2020 than they had in 2018.

Some years have no COLA at all. This happened in 2010, 2011, and 2016, when inflation was so low that the index did not rise enough to trigger an increase. In those years, SSDI payments stayed the same as the year before.

What the 2020 raise meant for your monthly payment

The actual dollar amount of your raise depended on how much you were receiving before January 2020. Someone receiving $500 a month got a $8.50 raise. Someone receiving $1,500 a month got a $25.50 raise. The percentage was the same for everyone, but the dollar amount was different.

If you were also receiving Supplemental Security Income (SSI), you may have seen a different raise amount. SSI has its own federal payment rate, which also increased in 2020, but by a different dollar amount than SSDI.

Checking your payment records from 2020

If you want to see whether your payment changed in January 2020, you can check your Social Security account online at ssa.gov. Create an account or sign in, then look at your payment history. You will see each month's payment amount listed.

You can also call Social Security at 1-800-772-1213 to ask about your 2020 payment history. Have your Social Security number ready when you call.

COLAs in the years after 2020

After 2020, the COLA changed again each January based on that year's inflation. In 2021, the COLA was 1.3 percent. In 2022, it jumped to 8.7 percent because inflation rose sharply. In 2023, it was 8.8 percent. In 2024, it dropped to 3.2 percent.

The COLA will continue to change each year depending on inflation. There is no way to predict what next year's COLA will be until Social Security announces it in October.

Frequently Asked Questions

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

No. Everyone got the same percentage raise (1.7 percent), but the dollar amount was different for each person. Someone receiving $800 a month got a $13.60 raise, while someone receiving $2,000 a month got a $34 raise. The percentage stays the same; the dollars depend on what you were already receiving.

What if I didn't see a raise in my January 2020 payment?

Contact Social Security to check your account. If you were not receiving SSDI in December 2019, you would not have received the January 2020 COLA. If you were receiving it, the raise should have been applied automatically. Call 1-800-772-1213 or check your account at ssa.gov to see your payment history.

Can I request a larger raise or a different COLA amount?

No. The COLA is set by formula and applies to all SSDI recipients at the same percentage. You cannot request a different amount, and Social Security cannot give you a larger raise than the formula produces.

Does the COLA happen every year?

The COLA calculation happens every year, but the raise amount may be zero. In 2010, 2011, and 2016, inflation was so low that there was no COLA—payments stayed the same. In all other recent years, there has been a raise, though the size varies.