The 2023 SSDI payment amounts and how they were set

In 2023, the average SSDI payment for a disabled worker was $1,350 per month. The maximum payment a disabled worker could receive was $3,822 per month. These figures came from a cost-of-living adjustment (COLA) that Social Security announced in October 2022 for all benefits starting in January 2023.

The COLA for 2023 was 8.7 percent — the largest increase in four decades. This happened because inflation in 2022 pushed the Consumer Price Index higher than it had been in years. Social Security calculates COLA each year by comparing the average Consumer Price Index for July, August, and September of the current year to the same three months in the previous year. If prices went up, benefits go up by that same percentage. If prices stayed flat or fell, benefits stay the same (they never decrease).

Your own 2023 payment depended on your work history and the age at which you started receiving benefits. Someone who worked longer and earned more during their working years received a higher payment than someone with a shorter or lower-earning work history. The Social Security Administration calculated your Primary Insurance Amount (PIA) — the base payment you are may have access to to — using a formula tied to your 35 highest-earning years.

Key Takeaways

  • The 2023 SSDI average payment was $1,350 per month, with a maximum of $3,822, based on an 8.7 percent cost-of-living adjustment announced in October 2022.
  • Your individual 2023 payment amount depended on your specific work history and earnings record, not on the national average or maximum.
  • COLA adjustments happen every January and are calculated using inflation data from the previous summer and fall.
  • If you were receiving SSDI in 2022, your 2023 payment automatically increased by 8.7 percent with no action required on your part.

How your work history determined your 2023 payment

Social Security used your earnings record to calculate what you would receive. The system looked at your 35 highest-earning years of work (after age 21). If you had fewer than 35 years of earnings on record, Social Security counted zeros for the missing years, which lowered your average. This is why someone who worked for 30 years received less than someone who worked for 40 years, even if they earned the same amount per year.

Social Security then applied a formula to your average earnings to arrive at your Primary Insurance Amount. The formula includes bend points — dollar thresholds that change each year. In 2023, the bend points were $1,115 and $6,721. The formula replaced a higher percentage of your earnings below the first bend point than it did above the second. This design means lower-earning workers receive a higher percentage of their pre-disability earnings replaced by SSDI, while higher-earning workers receive a lower percentage.

Your 2023 payment was the result of this formula, then increased by the 8.7 percent COLA. You could not choose a different payment amount or opt out of the COLA increase.

Why 2023 saw such a large increase

The 8.7 percent COLA in 2023 was unusual because inflation spiked in 2022. From mid-2021 through 2022, prices for food, energy, housing, and goods rose faster than they had in decades. The Consumer Price Index for July, August, and September 2022 reflected these increases, so Social Security's formula produced a much larger COLA than the typical 1 to 3 percent seen in most years.

This large increase meant that someone receiving $1,200 per month in December 2022 received $1,304 per month starting in January 2023 — an extra $104 per month. For someone on the maximum, the increase was roughly $330 per month. However, the increase was not uniform across all recipients. Your specific increase depended on what you were receiving in December 2022.

How to find your own 2023 payment amount

Your official 2023 SSDI payment amount appeared on your Social Security statement, which you could view online through your my Social Security account at ssa.gov. If you created an account, you could log in and see your current payment, your payment history, and your earnings record.

You could also call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) to ask what your 2023 payment was. Have your Social Security number ready. If you received a paper statement in the mail, it showed your payment amount for the current year.

If you believed your 2023 payment was wrong, you could request a detailed explanation of how Social Security calculated it. This explanation, called a benefit calculation statement, showed your earnings record, the bend points used, and the formula applied. You could request this through your my Social Security account or by calling Social Security directly.

What happened if you worked while receiving SSDI in 2023

If you earned income from work in 2023, Social Security applied work incentives that allowed you to keep some of your SSDI payment even while earning. The most common work incentive was the Trial Work Period (TWP), which allowed you to work and earn any amount for nine months (not necessarily consecutive) without losing any SSDI payment.

After the Trial Work Period ended, Social Security used the Substantial Gainful Activity (SGA) threshold to decide whether your work earnings were high enough to affect your benefits. In 2023, the SGA threshold for non-blind disabled workers was $1,470 per month. If you earned more than that in a month, Social Security could find that you were no longer disabled and could stop your benefits. However, other work incentives like the Plan to Achieve Self-Support (PASS) and Impairment Related Work Expenses (IRWE) could reduce your countable earnings and protect your payment.

Differences between 2023 SSDI and SSI payments

SSDI and Supplemental Security Income (SSI) are separate programs with different payment rules. In 2023, the maximum SSI payment for an individual was $914 per month (also increased by 8.7 percent COLA). However, SSI is a needs-based program, meaning your payment depends on your income and resources, not on your work history. SSDI is an insurance program based on your earnings record.

Some people received both SSDI and SSI in 2023 — this happened when someone's SSDI payment was below the SSI maximum and they had little other income or resources. Social Security would pay the SSDI amount first, then top it up with SSI to reach the SSI maximum. Both payments increased by the same 8.7 percent COLA in January 2023.

How 2023 payments compared to prior years

The 2023 SSDI average of $1,350 per month represented a significant jump from 2022, when the average was $1,242 per month. The 2022 COLA had been 5.9 percent. Going back further, 2021 saw a 1.3 percent COLA, and 2020 saw a 1.6 percent COLA. The 8.7 percent increase in 2023 was the largest single-year increase since 1982.

However, comparing payment amounts across years without accounting for inflation can be misleading. A $1,350 payment in 2023 had less purchasing power than a $1,350 payment would have had in 2022, because prices had risen. The COLA adjustment was meant to keep your payment roughly level with inflation, not to increase your real purchasing power.

Frequently Asked Questions

Did I have to do anything to get the 2023 COLA increase?

No. If you were receiving SSDI in December 2022, your payment automatically increased by 8.7 percent starting in January 2023. Social Security applied the increase without requiring you to contact them or submit any paperwork. You would have seen the higher amount on your January 2023 payment.

What if I started receiving SSDI in 2023 — did I get the full 8.7 percent increase?

Your first payment in 2023 was calculated using the 2023 bend points and formula, which already reflected the COLA adjustment. You did not receive a separate increase because you were not receiving benefits in 2022. Your payment was based on your work history and the current-year formula.

Can I appeal my 2023 payment amount if I think it is wrong?

Yes. If you believe Social Security made an error in calculating your payment, you can request a detailed benefit calculation statement and then file an appeal. You have 60 days from the date you receive a notice to appeal. Contact Social Security at 1-800-772-1213 to start the process.

Will my 2023 payment change if I turn 66 or 67?

If you are receiving SSDI and reach full retirement age, your payment converts to a retirement benefit, but the amount usually stays the same. Social Security does not recalculate your benefit amount at full retirement age unless you request a recalculation based on additional earnings. The payment continues to receive COLA adjustments each January.

How does the 2023 SSDI payment affect my Medicare or Medicaid?

Your SSDI payment amount does not affect your Medicare coverage — you become may be able to access for Medicare after receiving SSDI for 24 months, regardless of payment size. However, if you also receive SSI, a higher SSDI payment could reduce your SSI amount and might affect your Medicaid coverage in some states. Check with your state Medicaid office if you are concerned about how your payment affects your health coverage.