SSDI recipients automatically receive COLA each year

If you receive Social Security Disability Insurance (SSDI), your monthly benefit amount increases each year when Social Security announces a Cost of Living Adjustment, or COLA. You do not have to do anything to receive it — the increase happens automatically to your account.

The COLA is a percentage increase that Social Security applies to all SSDI payments, usually in January. The percentage changes each year based on inflation data from the previous year. In some years the COLA is larger, in other years it is smaller, and in rare years there is no increase at all.

Your new benefit amount takes effect on the first day of the month after Social Security announces the COLA. You will see the higher payment in your bank account or on your check, depending on how you receive benefits.

Key Takeaways

  • COLA increases your SSDI payment automatically each January without any action on your part.
  • The percentage increase varies year to year and is based on inflation measured during the previous year.
  • Your new payment amount begins the first of the month following the announcement, usually in October of the prior year.
  • COLA applies to all SSDI recipients, including those who also receive benefits for family members on their record.

How the COLA percentage is calculated

Social Security calculates the COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across the economy. The agency compares the average CPI-W for the third quarter (July, August, September) of the current year to the same three months of the previous year.

If the index is higher, there is a COLA. The percentage increase is rounded down to the nearest tenth of a percent. If the index is lower or stays the same, there is no COLA that year — your payment stays the same as the year before.

Social Security announces the COLA in October, and it takes effect the following January. This means you learn about next year's increase in the fall, giving you time to plan.

Who receives the COLA increase

Every person receiving SSDI gets the COLA increase. This includes workers who became disabled before retirement age, as well as family members who receive benefits on a disabled worker's record — such as a spouse, ex-spouse, or child.

If you are receiving both SSDI and Supplemental Security Income (SSI), you receive a COLA on your SSDI portion. SSI has a separate COLA that is usually the same amount but is calculated and applied separately.

The COLA applies whether you receive your payment by direct deposit, check, or a benefit payment card. The increase shows up in your next payment after January 1st.

What COLA does and does not cover

The COLA is meant to help your benefit keep pace with inflation — the rising cost of food, housing, medical care, and other expenses. However, the COLA is a single percentage applied to all recipients, so it may not match your personal inflation experience. If your costs rose faster than the national average, the COLA may not fully cover the difference.

The COLA does not change the rules for how much you can earn while receiving SSDI, the amount you can have in savings, or any other may be able to access rules. It is only an increase to your monthly payment amount.

If you are working and earning income, the COLA increase does not affect your work incentives or the amount you can earn before your benefits are reduced.

Checking your COLA increase

You can see your new benefit amount by logging into your my Social Security account at ssa.gov. The account shows your current payment amount and any changes that have been made.

Social Security also sends a notice in December showing your new benefit amount starting in January. If you do not receive a notice and your payment does not increase, contact Social Security to confirm the COLA was applied to your account.

If you have a representative payee (someone who manages your benefits on your behalf), they will also receive notice of the increase.

COLA in years with no increase

In years when inflation is flat or negative, Social Security does not grant a COLA. This happened in 2010, 2011, and 2016. When there is no COLA, your payment amount stays exactly the same as the previous year.

You continue to receive your regular monthly payment with no change. The next year, if inflation returns, a COLA may be granted again.

Frequently Asked Questions

Do I have to do anything to get my COLA increase?

No. The COLA is automatic. Social Security applies it to your account without any action from you. You will see the higher amount in your next payment after January 1st.

When will I see the COLA increase in my payment?

The COLA takes effect January 1st each year. You will receive the higher amount in your first payment of the month after January 1st — either in early January if you receive payments on the 3rd, 4th, or 5th of the month, or in early February if you receive payments later in the month.

What if I think my COLA was calculated wrong?

Contact Social Security directly at 1-800-772-1213 to ask about your specific increase. You can also visit your local Social Security office or log into your my Social Security account to review your benefit history and see when increases were applied.

Does COLA explore if I'm working and receiving SSDI?

Yes. The COLA increase applies to all SSDI recipients regardless of work status. Your work does not prevent you from receiving the annual increase, though your total benefit may be reduced if you earn above the work incentive thresholds.

Can I receive COLA on both SSDI and SSI?

If you receive both, you get a COLA on your SSDI portion and a separate COLA on your SSI portion. The percentages are usually the same, but they are applied to each program independently.