Yes, SSDI received a COLA increase in 2018

Social Security Disability Insurance (SSDI) benefits did receive a cost of living adjustment (COLA) in 2018. The adjustment was 2 percent, which took effect in January 2018. This means that everyone receiving SSDI in December 2017 saw their monthly payment increase by 2 percent starting with their January 2018 payment.

The 2018 COLA was calculated based on inflation data from the third quarter of 2017. Social Security uses a specific measure called the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to determine whether a COLA happens and how large it is. Because inflation was modest in 2017, the 2 percent increase was smaller than some previous years, but it still meant more money in monthly checks for SSDI recipients.

Key Takeaways

  • The 2018 COLA raised SSDI payments by 2 percent for all recipients, effective January 2018.
  • COLA adjustments are automatic and happen every year when inflation is measured above zero, with no action required from you.
  • The increase applied to your primary SSDI benefit amount, and any family members receiving benefits on your record also received the same percentage increase.
  • Your new payment amount appeared in your January 2018 check; you did not need to report anything or reapply.

How the 2018 increase was calculated

Social Security calculates COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures price changes for goods and services across the economy. The agency looks at the average CPI-W for July, August, and September of the year before the COLA takes effect. For 2018, those three months in 2017 showed enough inflation to trigger a 2 percent adjustment.

This calculation method is the same every year. If inflation is zero or negative, no COLA happens that year. If inflation is positive, even by a small amount, Social Security rounds the COLA to the nearest tenth of a percent. The 2018 figure of 2 percent was rounded from 2.0 percent.

Who received the 2018 COLA on SSDI

Every person receiving SSDI in December 2017 automatically received the 2 percent increase in January 2018. This included disabled workers, surviving spouses, and children of disabled workers. If you were on the SSDI rolls before January 2018, the increase applied to you without any action on your part.

Family members receiving benefits based on your SSDI record also received the same 2 percent increase. For example, if your spouse or child was receiving a benefit calculated as a percentage of your primary amount, their payment went up by 2 percent as well. The increase was uniform across all SSDI recipients.

What happened to your payment in January 2018

Your January 2018 SSDI check reflected the new, higher amount. If you received benefits by direct deposit, the larger payment appeared in your bank account on your regular payment date. If you received a paper check, it arrived with the higher amount. You did not need to do anything to receive this increase—it was automatic.

Social Security also mailed a notice to SSDI recipients in December 2017 explaining the 2018 COLA and showing the new benefit amount. This notice, called the "Notice of Benefit Amount," told you exactly what your new monthly payment would be starting in January. If you did not receive this notice or lost it, you could contact Social Security to ask for a replacement.

COLA and your other benefits or payments

The 2018 COLA applied only to your SSDI benefit itself. If you were also receiving Supplemental Security Income (SSI), that program had its own separate COLA calculation, which also resulted in a 2 percent increase for 2018. However, the two programs calculate COLA independently, so the percentages could differ in other years.

If you were receiving SSDI and working, the COLA increase did not change how your work affects your benefits. The earnings limit for the trial work period and the substantial gainful activity (SGA) threshold are set separately from COLA and may change on different schedules. The 2 percent increase to your benefit amount was separate from any other changes to how work is treated under SSDI rules.

How 2018 COLA compared to other years

The 2 percent COLA in 2018 was moderate compared to some years. In 2017, there was no COLA because inflation was too low. In 2019, the COLA was 2.8 percent. In 2020, it was 1.3 percent. These variations happen because inflation itself varies year to year, and Social Security has no control over the COLA amount—it is determined by the CPI-W formula.

Some years have seen much larger COLAs. In 2008, for example, the COLA was 5.8 percent because inflation was higher. In other years, like 2010, 2011, and 2016, there was no COLA at all. The 2018 increase of 2 percent fell in the middle range of what SSDI recipients have experienced over the past two decades.

Frequently Asked Questions

Did I have to do anything to get the 2018 COLA increase?

No. The COLA increase was automatic. If you were receiving SSDI in December 2017, the 2 percent increase appeared in your January 2018 payment with no action required from you. You did not need to contact Social Security, reapply, or fill out any forms.

What if I started SSDI after January 2018—did I get the 2018 COLA?

No. The 2018 COLA applied only to people who were on the SSDI rolls in December 2017. If you began receiving SSDI in January 2018 or later, your initial benefit amount was calculated without the 2018 COLA factored in. Your first COLA would be the 2019 adjustment, which took effect in January 2019.

Can I find out what my benefit was before the 2018 COLA?

Yes. Your Social Security Statement or your online My Social Security account shows your current benefit amount. To find your pre-COLA amount, you can divide your current payment by 1.02. You can also contact Social Security directly and ask them to tell you what your benefit was in December 2017 before the increase.

Does COLA affect how much I can earn while on SSDI?

The COLA increase to your benefit amount does not change the earnings limits for SSDI. The substantial gainful activity (SGA) threshold and trial work period rules are set separately and may change on their own schedule. In 2018, the SGA amount was $1,180 per month, which was set independently of the COLA calculation.