The 2019 SSDI increase was 2.8 percent

Social Security announced in October 2018 that the 2019 cost of living adjustment (COLA) would be 2.8 percent. This meant that starting in January 2019, the average SSDI payment rose by that percentage. For someone receiving $1,200 per month in 2018, the new payment would be approximately $1,234 in 2019.

The 2.8 percent figure came from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from the third quarter of 2017 to the third quarter of 2018. Social Security calculates COLA each year using this same method, comparing inflation over a specific 12-month window. The adjustment applies to all SSDI beneficiaries automatically—you do not need to do anything to receive it.

This 2019 increase was larger than the 2018 COLA, which had been 2.0 percent. It reflected a period of higher inflation in energy and food costs during 2018. However, it was smaller than some years: the 2017 COLA had been only 0.3 percent, and the 2016 COLA had been zero.

Key Takeaways

  • The 2019 COLA of 2.8 percent applied to all SSDI beneficiaries starting January 1, 2019, with no action required on your part.
  • The increase was calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers, measured from July through September 2017 and 2018.
  • Your new payment amount appeared on your Social Security statement and in your bank account in January 2019; you received a notice in December 2018 showing the exact new amount.
  • COLA affects not only your SSDI payment but also your Medicare premiums and any Supplemental Security Income (SSI) you receive.

How the 2019 COLA affected your actual payment

The 2.8 percent increase applied to your primary insurance amount (PIA)—the base figure Social Security uses to calculate your SSDI payment. If you were receiving SSDI as a disabled worker, your payment went up by 2.8 percent. If you were receiving SSDI as a spouse or child of a disabled worker, your payment also increased by 2.8 percent.

Social Security mailed notices in December 2018 showing your new payment amount effective January 2019. If you received direct deposit, the new amount appeared in your account on the third day of January 2019 (or the next business day if January 3 fell on a weekend). If you received a paper check, it arrived in early January with the new amount.

The increase was permanent—it did not expire or phase out. However, your payment could change again in 2020 if the COLA for that year was different. COLA is recalculated every year based on inflation data from the previous year.

Why 2.8 percent and not a different number

Social Security is required by law to calculate COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers. This index tracks the cost of goods and services that working people buy—food, housing, transportation, medical care, and other expenses. The agency compares the index value from July, August, and September of one year to the same three months of the previous year.

For 2019, the CPI-W rose 2.8 percent between the third quarter of 2017 and the third quarter of 2018. That specific measurement period is set by law and does not change. Social Security has no discretion to adjust the percentage up or down based on other factors.

The CPI-W is not the same as the Consumer Price Index for All Urban Consumers (CPI-U), which is often cited in news reports about inflation. The CPI-W focuses on wage earners and clerical workers, while the CPI-U includes all urban consumers. For 2019, the two indices produced similar results, but in other years they can differ by a percentage point or more.

The impact on Medicare premiums and SSI payments

The 2019 COLA affected more than just your SSDI payment. If you were enrolled in Medicare Part B (medical insurance), your premium was held flat at $135.50 per month in 2019—the same as 2018. This was because of a rule called "hold harmless," which prevents your Medicare Part B premium from rising faster than your SSDI payment increases. However, if you were a higher-income beneficiary or a new Medicare enrollee, your premium may have been higher.

If you were receiving Supplemental Security Income (SSI) in addition to SSDI, your SSI payment also increased by 2.8 percent in January 2019. The federal SSI benefit rate for 2018 had been $751 per month for an individual; in 2019 it became $771 per month. Many states add their own supplement to the federal SSI amount, and those state supplements also increased by 2.8 percent.

If you were subject to the Government Pension Offset or Windfall Elimination Provision—rules that reduce Social Security payments for people who also receive pensions from government employment—those reductions were also adjusted by 2.8 percent in 2019.

How 2019 compared to other recent years

The 2.8 percent COLA for 2019 was moderate by recent standards. The years when ready following the 2008 financial crisis saw very low or zero COLAs: 2009, 2010, and 2016 all had zero percent increases. The 2011 COLA was 3.6 percent, and the 2012 COLA was 3.6 percent as well, reflecting higher inflation during those periods.

The 2018 COLA had been 2.0 percent, so the 2019 increase represented a step up. However, the 2020 COLA would be only 1.6 percent, and the 2021 COLA would be 1.3 percent, showing that inflation varied significantly year to year. The COLA is never the same two years in a row because inflation itself is not constant.

What you should have received in December 2018

In December 2018, Social Security mailed a notice titled "Your Social Security Benefit Statement" or "Notice of Benefit Amount" to every SSDI beneficiary. This notice showed your old monthly payment amount, the 2.8 percent increase, and your new payment amount effective January 1, 2019. It also explained that the increase was due to the cost of living adjustment.

If you did not receive this notice, or if the new payment amount shown was incorrect, you could contact Social Security by phone at 1-800-772-1213 or visit your local Social Security office. You could also create an account on ssa.gov to view your payment information online. The notice was important to keep for your records, especially if you needed to report your income to other programs like Medicaid or housing information.

Frequently Asked Questions

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

No. The COLA was applied automatically to all SSDI beneficiaries. You did not need to contact Social Security, file any form, or take any action. The new payment amount straightforward appeared in your account or check in January 2019.

What if I thought the 2.8 percent calculation was wrong?

The COLA calculation is set by law and is not subject to individual review or appeal. Social Security uses the Consumer Price Index data published by the Bureau of Labor Statistics, which is a federal agency. If you believed your specific payment amount was calculated incorrectly, you could contact Social Security to verify the math, but you could not challenge the 2.8 percent figure itself.

Did the 2019 increase affect my work incentives or trial work period?

No. The COLA increased your payment amount but did not change the rules for work incentives, the trial work period, or the substantial gainful activity (SGA) earnings limit. Those rules are set separately and may change on different schedules. You should check Social Security's website or contact your work incentives planning and information (WIPA) project for current work rules.

How does COLA affect my taxes on SSDI?

The COLA increase raised your total SSDI income for the year, which could affect how much of your benefits are subject to federal income tax. If your combined income (SSDI plus other income) exceeded certain thresholds, a portion of your SSDI became taxable. The thresholds themselves did not change for 2019, so the increase in your payment could push you into a taxable range if you were close to the limit.

Will there be a COLA increase in 2020?

Yes, but the amount was different. Social Security announced in October 2019 that the 2020 COLA would be 1.6 percent. This was lower than 2019 because inflation was lower during the measurement period. COLA is recalculated every year based on current inflation data, so the percentage changes annually.