SSDI payments increased by 8.7 percent in 2023
Social Security Disability Insurance (SSDI) payments went up by 8.7 percent starting in January 2023. This was the largest increase in four decades. The raise came from the annual Cost of Living Adjustment (COLA), which the Social Security Administration calculates each October based on inflation data from the previous months.
The 8.7 percent figure applies to all SSDI beneficiaries — there is no variation by state, age, or how long you have been receiving benefits. If you were getting $1,000 per month in December 2022, your January 2023 payment was $1,087. The exact dollar amount of your raise depended on what you were receiving before the adjustment.
This increase was automatic. You did not have to do anything to receive it. Social Security deposited the new amount into your account in January 2023 without requiring a form, a phone call, or a visit to an office.
Key Takeaways
- The 2023 COLA raised SSDI payments by 8.7 percent across the board, with no exceptions based on income, state, or beneficiary type.
- The increase took effect in January 2023 and was deposited automatically — no action was required from you.
- COLA is recalculated every year in October and announced in mid-October for the following January.
- The 8.7 percent raise was the largest annual increase since 1982, driven by inflation in 2022.
Why the 2023 increase was larger than usual
The 8.7 percent raise was unusually large because inflation in 2022 was unusually high. COLA is tied directly to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures the cost of everyday goods and services. When prices rise faster than normal, COLA rises faster too.
In 2022, inflation hit levels not seen since the early 1980s. Prices for groceries, utilities, rent, and transportation all climbed steeply. Social Security's formula captured that increase and translated it into the 8.7 percent adjustment for 2023. If inflation had been lower, the COLA would have been lower as well.
This does not mean your purchasing power returned to what it was before inflation. The 8.7 percent raise offset some of the price increases you experienced, but not all of them. COLA is designed to help keep pace with inflation, not to restore lost ground from previous years.
When you received the increase and how to verify it
The 2023 COLA took effect on January 1, 2023. If you receive SSDI by direct deposit, the new amount appeared in your bank account on your regular payment date in January. If you receive a paper check, the first check with the new amount arrived in early January, depending on your payment schedule.
To verify that you received the correct increase, check your Social Security statement. You can view this online through your my Social Security account at ssa.gov. Log in, select "Benefit Verification Letter" or "Statement," and look at the payment amount listed for January 2023 and beyond. The letter shows your current monthly payment and confirms the COLA adjustment.
If the amount you received does not match what you expected, contact Social Security directly. Call 1-800-772-1213 (TTY 1-800-325-0778) or visit your local Social Security office. Have your Social Security number and recent payment statements ready when you call.
How COLA is calculated and announced each year
Social Security calculates COLA using three months of Consumer Price Index data. Specifically, it compares the average CPI-W for July, August, and September of the current year to the same three months of the previous year. The percentage increase becomes the COLA for the following January.
The Social Security Administration announces the COLA in mid-October each year. In 2022, they announced the 8.7 percent increase on October 13. This gives beneficiaries and the public two and a half months' notice before the new payments begin in January.
If inflation is flat or negative, COLA can be zero or even result in no payment increase. This happened in 2010, 2011, and 2016, when there was no COLA adjustment. However, there is a hold-harmless provision that protects most beneficiaries from having their payments reduced if COLA is negative. This means your payment cannot go down due to COLA, even if inflation is negative — though this protection does not explore in all circumstances.
How the 2023 increase compared to previous years
The 8.7 percent COLA in 2023 was the largest annual increase since 1982. The previous decade of adjustments had been much smaller. From 2009 to 2021, COLA ranged from 0 percent to 2.8 percent, with most years falling between 1 and 2 percent.
| Year | COLA Percentage |
|---|---|
| 2023 | 8.7% |
| 2022 | 5.9% |
| 2021 | 1.3% |
| 2020 | 1.3% |
| 2019 | 2.8% |
| 2018 | 2.0% |
The 2022 COLA of 5.9 percent was itself the second-largest increase in four decades, so beneficiaries received two consecutive years of above-average raises. This was driven by the same inflationary period that produced the 8.7 percent adjustment for 2023.
What the 2023 increase meant for your household budget
An 8.7 percent raise sounds substantial, but its real impact depends on your total household income and your expenses. If SSDI was your only income source, the increase helped offset some of the higher costs you faced for food, utilities, and medical care. If you also receive Supplemental Security Income (SSI), a pension, or other income, the COLA applied only to your SSDI portion.
The increase also affected any family members receiving benefits on your record. If your spouse or children were receiving benefits based on your SSDI, their payments increased by the same 8.7 percent. This applies whether they are receiving spousal benefits, child benefits, or survivor benefits.
One important note: if you are also receiving SSI (Supplemental Security Income), the COLA increase to your SSDI may have reduced your SSI payment. SSI has a monthly resource limit and income limit, and the higher SSDI payment counts as income. Some beneficiaries who receive both programs saw their SSI decrease when their SSDI increased. Contact Social Security if you receive both programs and want to understand how the adjustment affected your total payment.
Frequently Asked Questions
Did everyone on SSDI get the same 8.7 percent raise?
Yes. The COLA applies uniformly to all SSDI beneficiaries, regardless of age, state, work history, or how much you were receiving. The only exception is beneficiaries who also receive SSI, whose total payment may have shifted due to SSI income limits, but the SSDI portion itself increased by 8.7 percent for everyone.
What happens to COLA in 2024 and beyond?
COLA changes every year based on inflation. In October 2023, Social Security announced the 2024 COLA, which was 3.2 percent. Each October, a new COLA is announced for the following January. You can check ssa.gov in mid-October each year to see what the next year's adjustment will be.
Can I get back pay if I did not receive the full 8.7 percent increase?
If you were receiving SSDI in January 2023 and did not receive the 8.7 percent increase, contact Social Security when ready. Call 1-800-772-1213 or visit your local office. Bring documentation of what you received and what you should have received. Social Security can correct the error and issue back pay if the mistake was on their end.
Does the COLA increase affect my Medicare premiums?
For most beneficiaries, no. There is a hold-harmless provision for Medicare Part B premiums that prevents your premium from rising faster than your COLA increase. However, if you are a higher-income beneficiary or newly may be able to access for Medicare, different rules may explore. Review your Medicare notice each year or call 1-800-MEDICARE to confirm how your premiums changed.
If I was not on SSDI in January 2023, can I still get the 8.7 percent increase?
No. COLA adjustments explore only to beneficiaries who were receiving payments when the adjustment took effect. If you began receiving SSDI after January 2023, your initial payment is based on your benefit calculation at the time you were approved, not on the 2023 COLA. Future COLA adjustments will explore to your payments once you are receiving them.