The 2018 SSDI increase was 2 percent

Social Security Disability Insurance (SSDI) payments rose by 2 percent in January 2018. This increase applied to all beneficiaries receiving SSDI that month, meaning your monthly payment went up by 2 percent of whatever you were receiving in December 2017.

The 2 percent figure came from the Cost of Living Adjustment (COLA), which Social Security calculates each year based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Because inflation was relatively low in 2017, the adjustment was smaller than in some other years.

If you were receiving $1,000 per month in December 2017, your January 2018 payment became $1,020. The increase was automatic — you did not need to request it or contact Social Security.

Key Takeaways

  • The 2018 COLA raised SSDI payments by 2 percent, effective January 2018.
  • Social Security calculates COLA each October based on inflation data from the previous nine months, and announces the new rate in mid-October.
  • The increase applies to all SSDI beneficiaries automatically; you receive the higher amount without taking any action.
  • COLA affects not only SSDI but also Supplemental Security Income (SSI) and Social Security retirement benefits.

How Social Security calculated the 2018 increase

The COLA process begins with the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published monthly by the Bureau of Labor Statistics. Social Security looks at the average CPI-W for the third quarter of each year — July, August, and September — and compares it to the average for the third quarter of the previous year.

For 2018, the third-quarter 2017 average was compared to the third-quarter 2016 average. The difference between those two averages was 2.0 percent, which became the 2018 COLA. Social Security announced this figure on October 12, 2017, and the increase took effect on January 1, 2018.

If the CPI-W had shown no increase or a decrease from year to year, there would have been no COLA that year — beneficiaries would have received the same payment amount. This has happened three times since 2000: in 2010, 2011, and 2016.

Who received the 2018 increase

Every person receiving SSDI in January 2018 received the 2 percent increase automatically. This included workers who became disabled before retirement age, adult children of disabled or deceased workers, and surviving spouses of disabled workers.

The increase also applied to family members receiving benefits on a worker's record. If you were receiving benefits as a spouse or child of an SSDI beneficiary, your payment also rose by 2 percent in January 2018.

Supplemental Security Income (SSI) beneficiaries also received a 2 percent increase in January 2018, though SSI is a separate program from SSDI. Both programs use the same COLA calculation.

What the 2018 increase meant for your monthly payment

The actual dollar amount of your increase depended on what you were receiving before January 2018. Someone receiving $500 per month gained $10. Someone receiving $1,500 per month gained $30. The percentage was the same for everyone, but the dollar amount varied based on your individual payment.

Social Security rounded the new payment amount to the nearest whole dollar. If your calculation resulted in a payment ending in 50 cents or more, it rounded up; if it ended in less than 50 cents, it rounded down.

The increase was permanent — it did not expire or revert. Your new January 2018 payment amount became your baseline for future COLA calculations.

Why 2018's increase was smaller than some years

The 2 percent COLA in 2018 was modest compared to some earlier years. In 2008, for example, SSDI beneficiaries received a 5.8 percent increase. In 2011 and 2016, there was no increase at all because inflation was flat or negative.

COLA depends entirely on inflation, which fluctuates based on the economy. When prices for goods and services rise faster, COLA is larger. When inflation is slow or nonexistent, COLA is smaller or zero. Social Security has no control over this calculation — it is determined by actual inflation data published by the Bureau of Labor Statistics.

The 2 percent increase in 2018 reflected the fact that the cost of living rose modestly during 2017. It was not a decision made by Social Security or Congress; it was the direct result of how much prices actually increased that year.

How to verify your 2018 payment increase

You could see the 2018 increase reflected in your January 2018 payment. If you received a paper check, the amount on the check was 2 percent higher than your December 2017 check. If you received direct deposit, the amount deposited to your bank account on the payment date was 2 percent higher.

You could also view your payment history through your Social Security account online at ssa.gov. Log in to your account, select "Benefit Verification Letter" or "Payment History," and you would see the January 2018 amount listed separately from prior months.

If you received a notice from Social Security in December 2017 or early January 2018, it would have stated your new payment amount and explained that it reflected the 2018 COLA. Keeping this notice was useful for your records.

Frequently Asked Questions

Did I have to do anything to receive the 2018 increase?

No. The increase was automatic. Every SSDI beneficiary received it without taking any action or contacting Social Security. You straightforward received the higher payment amount starting in January 2018.

What if I didn't see an increase in my January 2018 payment?

Contact Social Security to verify your payment history. If you were a new beneficiary who started receiving SSDI after January 2018, you would not have received the increase retroactively. If you had a payment suspension or other issue, Social Security can explain what happened to your specific account.

Does the 2018 increase affect how much I can earn while working?

No. The COLA increase does not change the Substantial Gainful Activity (SGA) limit or other work-related rules. Those limits are set separately and may change on different schedules. Check with Social Security about current work limits if you are considering employment.

Will I receive another increase in 2019?

Yes, if inflation continues. Social Security calculates a new COLA each year based on that year's inflation data. The 2019 COLA was announced in October 2018 and took effect in January 2019, though the percentage was different from 2018.