The 2018 SSDI payment increase was 2 percent
In 2018, Social Security Disability Insurance (SSDI) payments went up by 2 percent. This increase, called a Cost of Living Adjustment or COLA, took effect in January 2018. The exact dollar amount of your increase depended on what you were receiving in 2017.
If you were receiving $1,000 per month in December 2017, your January 2018 payment would have been $1,020. The increase was automatic — you did not have to do anything to receive it, and Social Security sent notices to all beneficiaries in December 2017 explaining the new amount.
The 2 percent figure was calculated by Social Security using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures how prices for goods and services change over time. When prices rise, Social Security assumes your costs rise too, so the payment goes up to keep pace.
Key Takeaways
- The 2018 COLA raised SSDI payments by 2 percent across the board, effective January 2018.
- Your specific dollar increase depended on your payment amount in December 2017 — there was no single amount everyone received.
- Social Security calculated the 2 percent using the Consumer Price Index, which tracks inflation in the economy.
- You received a notice in December 2017 showing your new payment amount; no action was required on your part.
How Social Security decides the COLA percentage each year
Social Security does not choose the COLA percentage. Instead, the law requires Social Security to use a specific measure: the average Consumer Price Index for the third quarter (July, August, and September) of each year, compared to the same three months in the previous year.
For 2018, Social Security looked at prices from July through September 2017 and compared them to July through September 2016. The difference was 2 percent. This same method applies every year, which is why some years the COLA is higher (like 2022, when it was 8.7 percent) and some years it is lower (like 2016 and 2017, when it was 0 percent).
Congress set up this automatic system so that COLA adjustments would not depend on political decisions or debates. The math is done the same way every October, and the new payment amount takes effect the following January for all beneficiaries receiving SSDI, Supplemental Security Income (SSI), and Social Security retirement benefits.
What the 2 percent increase meant for different payment amounts
Because the COLA is a percentage, not a flat dollar amount, people receiving higher payments got larger increases. Here are examples of how the 2 percent worked:
| December 2017 Payment | 2 Percent Increase | January 2018 Payment |
|---|---|---|
| $800 | $16 | $816 |
| $1,000 | $20 | $1,020 |
| $1,200 | $24 | $1,224 |
| $1,500 | $30 | $1,530 |
The increase was rounded to the nearest dollar. If your 2 percent increase came to $15.60, Social Security rounded it to $16. This rounding rule applied to everyone, so some people's increases were slightly higher or lower than exactly 2 percent.
Why 2018 had a 2 percent increase when some years had none
The COLA depends entirely on inflation — how much prices for food, housing, gas, medical care, and other goods and services went up. In 2016 and 2017, inflation was very low, so there was no COLA at all. In 2018, inflation picked up enough to reach 2 percent, so beneficiaries received an increase for the first time in three years.
This is why COLA amounts vary so much from year to year. It is not because Social Security changed its rules or because Congress voted on it. It is because the economy itself changed. When the economy is growing and prices are rising faster, the COLA is higher. When the economy is slow and prices are flat, the COLA is lower or zero.
How to find out what your 2018 payment was
If you were receiving SSDI in 2018, Social Security mailed you a notice in December 2017 that showed your new payment amount starting in January. This notice, called a Social Security Benefit Statement, listed your December 2017 payment and your January 2018 payment side by side.
If you no longer have that notice, you can create a my Social Security account at ssa.gov to view your payment history. Log in, go to "Benefit Verification," and you will see a record of every payment you received, including the amounts for December 2017 and January 2018.
You can also call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) and speak to a representative who can tell you what your payment was in any month. Have your Social Security number ready when you call.
Frequently Asked Questions
Did everyone on SSDI get the same 2 percent increase in 2018?
Yes, everyone receiving SSDI got a 2 percent increase in their payment amount. However, the dollar amount of the increase was different for each person because it was 2 percent of whatever they were receiving in December 2017. Someone receiving $800 got a $16 increase; someone receiving $1,500 got a $30 increase.
What if I was not receiving SSDI for the full year in 2017?
If you started receiving SSDI partway through 2017, you still received the 2 percent increase in January 2018 on whatever amount you were receiving in December 2017. The COLA applies to all beneficiaries regardless of when they started receiving payments.
Does the COLA increase affect SSI payments too?
Yes. SSI (Supplemental Security Income) beneficiaries also received the 2 percent increase in January 2018. The same COLA percentage applies to SSDI, SSI, and Social Security retirement benefits all at the same time.
Will there be a COLA increase in 2019?
Whether there is a COLA in 2019 depends on inflation between July and September 2018 compared to the same months in 2017. Social Security announces the COLA percentage in October of each year, so the 2019 COLA was announced in October 2018. You can check the Social Security website or call 1-800-772-1213 to find out what the 2019 COLA was.