The 2020 SSDI payment increase was 1.7 percent

In 2020, Social Security raised all disability payments by 1.7 percent. This increase, called a cost-of-living adjustment or COLA, happened automatically on January 1, 2020. The raise was smaller than the year before because inflation was lower in 2019 than it had been in 2018.

If you were receiving SSDI in December 2019, your January 2020 payment reflected this increase. You did not have to do anything to receive it — Social Security applied the raise to your account without requiring a new process or form.

The exact dollar amount of your raise depended on what you were receiving in December 2019. Someone getting $1,000 per month would have received an additional $17 per month starting in January. Someone getting $1,500 would have received an additional $25.50 per month. The percentage was the same for everyone, but the dollar amount varied based on your individual payment.

Key Takeaways

  • The 2020 COLA raised all SSDI payments by 1.7 percent, effective January 1, 2020.
  • Your raise amount in dollars depended on your December 2019 payment — the percentage was the same for everyone.
  • Social Security applied the raise automatically; you did not need to report anything or submit paperwork.
  • COLA happens every year and is based on inflation data from the previous year, so the percentage changes annually.
  • If you started SSDI after January 1, 2020, your first payment already included the 2020 COLA built in.

How the cost-of-living adjustment is calculated

Social Security calculates COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. This index measures how much prices rise for things people buy — food, housing, transportation, medical care, utilities. Social Security looks at the average CPI-W for the third quarter (July, August, September) of the current year and compares it to the same months in the previous year.

If prices went up 1.7 percent between those periods, everyone's payment goes up 1.7 percent. If prices stayed flat or went down, there is no COLA that year — payments stay the same. This has happened three times since 2000: in 2010, 2011, and 2016. In those years, people on SSDI received no raise, but their payments did not decrease either.

Congress does not vote on COLA each year. The law requires Social Security to calculate and explore it automatically based on the CPI-W data. The only way to stop a COLA is to change the law itself, which is rare and would require action by Congress.

Why 2020 was a smaller raise than 2019

In 2019, Social Security raised payments by 2.8 percent — nearly double the 2020 increase. The difference came down to inflation. In 2019, prices for gas, food, and other goods rose faster than they did in 2020. The 2019 COLA reflected that higher inflation from 2018. The 2020 COLA reflected slower inflation from 2019.

This is why COLA varies from year to year. Some years it is 3 percent or higher. Other years it is under 1 percent. It follows what actually happened to prices in the economy, not a fixed formula or prediction. The raise you receive depends entirely on what the CPI-W showed during that measurement period.

When you receive the 2020 raise in your payment

If you were on SSDI before January 1, 2020, the raise appeared in your January 2020 payment. You saw it on your bank statement or in the mail, depending on how you receive benefits. Social Security does not send the raise as a separate check — it is included in your regular monthly payment.

If you started SSDI after January 1, 2020, your first payment already included the 2020 COLA. You did not receive a separate "raise" — your initial payment was calculated using the post-COLA amount from the start.

Social Security sends a notice each December telling you what your new payment will be starting in January. If you did not receive one, you can call Social Security at 1-800-772-1213 to ask what your 2020 payment amount is and verify that the COLA was applied correctly.

How COLA affects other benefits you may receive

If you receive Supplemental Security Income (SSI) in addition to SSDI, or instead of it, SSI payments also went up by 1.7 percent in 2020. The same COLA applies to both programs because they are both part of Social Security.

If you are a family member receiving benefits on your SSDI record — a spouse or child — their payments also increased by 1.7 percent. The increase was automatic for them as well. Every person on your record who receives a benefit based on your work history gets the same percentage raise.

Frequently Asked Questions

Does the COLA raise happen every year?

Yes, Social Security calculates COLA every year based on inflation. However, the percentage changes. Some years it is 3 percent or higher; other years it is less than 1 percent. In three recent years (2010, 2011, and 2016), inflation was so low that there was no raise at all, and payments stayed the same.

What if I disagree with the 2020 raise amount?

The COLA is set by law and applies to everyone on SSDI. You cannot dispute the percentage itself. If you believe your payment amount is wrong for a different reason — such as an error in your work history or a change Social Security did not record — you can contact Social Security to ask them to review your record.

Will future years have bigger or smaller raises than 2020?

That depends on inflation in the years ahead. Social Security cannot predict COLA in advance. The 2021 COLA was 1.3 percent — lower than 2020. The 2022 COLA was 8.7 percent — much higher. Each year's raise reflects what actually happened to prices in the economy during the measurement period.

Do I have to do anything to receive the 2020 raise?

No. Social Security applies COLA automatically to everyone receiving SSDI. You do not need to contact them, fill out a form, or take any action. The raise appears in your payment without any effort on your part.

What if I started SSDI in 2020 after the COLA took effect?

Your first payment will already include the 2020 COLA. Social Security calculates your benefit amount using the current payment rate, which already has the raise built in. You will not receive a separate adjustment or notice about the COLA.