What the 2019 COLA increase was

In October 2018, the Social Security Administration announced that benefits would increase by 2.8 percent starting in December 2019. This was the annual cost of living adjustment (COLA) — the yearly raise that Social Security gives to account for inflation. For someone receiving $1,000 per month in SSDI, the 2.8 percent increase meant an extra $28 per month, bringing the total to $1,028.

The 2.8 percent figure came from a formula based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from the third quarter of one year to the third quarter of the next. Social Security does not choose the percentage — it is set by law based on inflation data.

Not everyone on SSDI saw the same dollar increase. The amount depended on what someone was already receiving. Someone getting $500 per month would have received a $14 increase; someone getting $2,000 would have received $56.

Key Takeaways

  • The 2019 COLA was 2.8 percent, which meant most SSDI recipients saw their monthly payment rise by roughly 3 percent starting December 2019.
  • The increase was automatic — recipients did not need to do anything to receive it, and it appeared in their December 2019 payment.
  • The COLA amount is determined by inflation data, not by Social Security or Congress, so the percentage changes each year.
  • Supplemental Security Income (SSI) recipients received the same 2.8 percent increase, though the dollar amount differed because SSI has different payment levels.

How the 2019 increase affected monthly payments

The increase took effect with the December 2019 payment, which most recipients received in early January 2020. For those who had their benefits deposited directly to a bank account, the new amount straightforward appeared; for those receiving a paper check, the check amount changed.

The 2.8 percent was applied to whatever amount someone was receiving at that time. If someone's benefit had been reduced because of work earnings, the COLA was applied to the reduced amount, not the full benefit rate. If someone was receiving a reduced benefit because they had claimed before full retirement age, the COLA still applied to their current payment.

The increase was permanent — it did not expire or reset. Every month after December 2019, the new higher amount continued, and future COLAs would be calculated based on this new baseline.

Why 2.8 percent was higher than some previous years

The 2019 COLA of 2.8 percent was notably larger than the increases in 2016 and 2017, which were 0.3 percent and 2.0 percent respectively. The variation happened because the COLA is tied directly to inflation in the economy.

From the third quarter of 2017 to the third quarter of 2018, inflation measured by the CPI-W rose 2.8 percent. That is why the 2019 COLA matched that figure. In years when inflation is lower, the COLA is lower; in years when inflation is higher, the COLA is higher. If inflation had been 1.5 percent, the COLA would have been 1.5 percent.

The formula has a floor: the COLA cannot go below zero, so even in years with deflation (falling prices), benefits do not decrease. However, there is no cap on how high the COLA can go if inflation rises sharply.

Who received the 2019 COLA

Everyone receiving SSDI in December 2019 received the 2.8 percent increase, with one exception: people who had not yet reached age 18 and were receiving benefits as a child of a worker who was retired, disabled, or deceased did not receive a COLA. Child beneficiaries' payments are set by a different rule and do not adjust annually.

Supplemental Security Income (SSI) recipients also received a 2.8 percent increase, though the federal SSI payment amount is different from SSDI. Some states add money to the federal SSI payment, and those state supplements also increased by 2.8 percent in most cases.

Spouses and ex-spouses receiving benefits on someone else's work record received the same 2.8 percent increase to their own payments.

How to find out what your 2019 increase was

The easiest way to see the 2019 COLA in action is to compare two benefit statements: one from November 2019 and one from December 2019 or later. The December statement shows the new amount after the increase took effect.

Social Security mails a benefit statement each year in the month before the COLA takes effect, explaining the new payment amount and the percentage increase. If you did not receive one, you can create a my Social Security account online at ssa.gov and view your payment history there, which shows the exact month the increase appeared.

If you were receiving SSDI in December 2019 but are no longer receiving it now, your payment records from that time period are still available through your my Social Security account or by calling Social Security at 1-800-772-1213.

The relationship between COLA and work incentives

The 2019 COLA increase did not change how much someone could earn while still receiving SSDI. The substantial gainful activity (SGA) limit — the amount of monthly earnings that can cause benefits to stop — is set separately and changes only when Congress updates it or when Social Security adjusts it for inflation using a different formula.

In 2019, the SGA limit was $1,220 per month for non-blind workers and $2,040 for blind workers. These amounts did not change because of the COLA. However, other work incentive thresholds, like the trial work period and the extended may be able to access period, are tied to the SGA limit and therefore remained the same.

Someone who was working and receiving SSDI in 2019 would have seen their benefit increase by 2.8 percent in December, but their earnings limit stayed the same. This meant slightly more total income from the combination of work and benefits.

Frequently Asked Questions

Did I have to do anything to get the 2019 COLA increase?

No. The increase was automatic and applied to everyone receiving SSDI in December 2019. You did not need to contact Social Security, fill out a form, or take any action. The new amount straightforward appeared in your December payment.

What if I was not receiving SSDI in December 2019?

If you started receiving SSDI after December 2019, your initial payment amount would have already included the 2.8 percent increase that had taken effect. You would not receive it again. If you stopped receiving SSDI before December 2019 and later restarted, your new payment would be based on your current benefit calculation, not a retroactive process of the 2019 COLA.

Does the COLA increase affect SSI differently than SSDI?

The percentage increase is the same — 2.8 percent in 2019 — but the dollar amount differs because SSI has a lower federal payment level than the average SSDI benefit. Someone on SSI would have received a smaller dollar increase than someone on SSDI, even though the percentage was identical.

Can I find out what my benefit was before the 2019 COLA?

Yes. Your my Social Security account shows your payment history month by month. You can see what you received in November 2019 and what you received in December 2019, making the increase visible. You can also call Social Security at 1-800-772-1213 and ask for a historical payment record.