The 2023 COLA raised SSDI payments by 8.7 percent

In October 2023, Social Security increased all SSDI payments by 8.7 percent. This was the largest cost of living adjustment (COLA) in four decades. The increase took effect with the November 2023 payment, which arrived in most bank accounts on the third of the month.

The 8.7 percent figure came from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from the third quarter of 2022 to the third quarter of 2023. Social Security calculates COLA each year using this same method. The adjustment was meant to offset inflation — the rising cost of food, housing, medicine, and other necessities.

If you received SSDI in November 2023 or later, your check reflected this increase. The amount you received depended on what you were getting before the adjustment. Someone receiving $1,200 per month would have received about $104 more per month after the increase. Someone receiving $800 would have received about $70 more.

Key Takeaways

  • The 2023 COLA of 8.7 percent was the largest adjustment since 1982 and applied to all SSDI recipients starting with the November 2023 payment.
  • Your new payment amount was calculated by multiplying your previous benefit by 1.087, though Social Security rounds the final amount to the nearest dollar.
  • The increase was automatic — you did not need to contact Social Security or take any action to receive it.
  • COLA adjustments affect not only your own SSDI payment but also any family members receiving benefits on your record, such as a spouse or child.

How the 2023 increase was calculated

Social Security took your November 2022 benefit amount and multiplied it by 1.087. The result was rounded to the nearest dollar. That became your new benefit starting in November 2023.

For example, if you received $1,547 in November 2022, your new amount would be $1,547 × 1.087 = $1,681.61, rounded to $1,682. The difference — $135 per month — would continue for as long as you received SSDI, unless a future COLA adjustment changed it again.

The increase was permanent unless your circumstances changed. If you returned to work, your benefits were suspended or stopped. If you turned 66 and switched to retirement benefits, your payment changed based on your retirement benefit calculation. Otherwise, the 2023 COLA amount stayed in place until the next annual adjustment in October 2024.

Who received the 2023 COLA increase

Every person on the SSDI rolls in November 2023 received the 8.7 percent increase. This included disabled workers, surviving spouses, surviving children, and surviving parents — anyone whose benefit was based on a disabled worker's record.

Family members mattered here. If you were receiving SSDI and your teenage child was also on your record, both of you received the 8.7 percent increase. If you were a surviving spouse collecting benefits on a deceased worker's record, you received it too. The increase applied across the board.

The only people who did not receive the 2023 COLA were those whose benefits had been suspended due to work activity or other reasons. Once benefits resumed, the new amount reflected the COLA adjustment that had occurred while benefits were suspended.

When the increase appeared in your account

Social Security announced the 2023 COLA in October 2023. The increase took effect with the November 2023 payment. Most recipients received their November payment on November 3, 2023, though the exact date depended on their birth date and payment schedule.

If you received your payment by direct deposit, the new amount hit your bank account on the scheduled date. If you received a check, it arrived by mail within a few days of that date. If you received a benefit payment card (the Direct Express card), the funds loaded on the payment date.

You could check your new benefit amount by logging into your my Social Security account online, calling Social Security at 1-800-772-1213, or visiting a local Social Security office. Your Social Security Statement, available through your online account, also showed the updated amount.

How the 2023 COLA affected your other benefits

The 8.7 percent increase could affect other programs you were receiving. Supplemental Security Income (SSI) — a separate needs-based program — also received an 8.7 percent COLA in 2023. If you were receiving both SSDI and SSI, both payments increased.

Medicare premiums, however, worked differently. Medicare Part B premiums are deducted from Social Security payments. In 2023, the Part B premium was $164.90 per month for most beneficiaries. The COLA increase meant you had more money coming in, but some of that went to cover the premium. The net effect — what you actually received after the premium was deducted — depended on the premium amount in your state and whether you may have access to for any premium information programs.

Medicaid and housing information programs sometimes count Social Security income when determining whether you remain may be able to access. A COLA increase could push your income above a program's limit, though this was uncommon. If you received means-tested benefits, it was worth checking with those programs to confirm the increase did not affect your status.

Comparing the 2023 COLA to previous years

The 2023 COLA of 8.7 percent was historically large. For context, the 2022 COLA was 5.9 percent, the 2021 COLA was 1.3 percent, and the 2020 COLA was 1.6 percent. Going back further, there was no COLA adjustment in 2010 or 2011 because inflation was too low.

The 2023 increase reflected the sharp rise in prices during 2022 and early 2023, particularly for food, energy, and housing. The Consumer Price Index rose faster than it had in decades, which is why the COLA was so large. It was the biggest adjustment since 1982, when the COLA was 11.2 percent.

COLA amounts vary from year to year based on inflation. There is no way to predict next year's adjustment in advance. Social Security announces the new COLA each October, and it takes effect the following November.

What to do if your payment did not increase

If your November 2023 payment was the same as your October 2023 payment, something was wrong. Contact Social Security to report it. Call 1-800-772-1213, visit your local Social Security office, or log into your my Social Security account and send a message through the find messaging system.

Reasons your payment might not have increased included: your benefits were suspended due to work activity; you had not yet been approved for SSDI; you were on a different payment schedule that had not yet processed the COLA; or there was an error in Social Security's system. A representative could review your account and correct any mistake.

Keep a record of what you received in October 2023 and what you received in November 2023. If you have a bank statement or benefit payment card statement showing both amounts, bring that when you contact Social Security. It makes the problem easier to investigate.

Frequently Asked Questions

Does the COLA increase affect my work incentives or trial work period?

No. The COLA increase is a straightforward adjustment to your benefit amount. It does not change the rules about how much you can earn while on SSDI, the length of your trial work period, or the extended may be able to access period. Those rules stay the same regardless of COLA adjustments.

If I was denied SSDI before 2023, does the COLA increase my chances of being approved now?

No. COLA adjustments do not affect the medical or non-medical rules for SSDI. They do not change what conditions Social Security considers disabling or how it evaluates your work history. A denial before 2023 would still be a denial based on the same criteria.

Can I request a larger increase if I think 8.7 percent is not enough?

No. COLA is set by law based on the Consumer Price Index. You cannot request a different amount. If you believe your benefit is too low for other reasons — for example, if you think your earnings record was calculated incorrectly — you can contact Social Security to review your account, but that is a separate issue from COLA.

What happens to the 2023 COLA if I turn 66 and switch to retirement benefits?

Your retirement benefit is calculated separately from your SSDI benefit. When you switch, Social Security recalculates your payment based on your full retirement age and your lifetime earnings record. The 2023 COLA you received on SSDI does not carry over directly, but your retirement benefit will include any COLA adjustments that occurred while you were on SSDI.

If I was in prison during 2023, did I still get the COLA increase?

SSDI benefits are suspended while you are in prison. When your benefits resume after release, they will reflect the COLA adjustments that occurred during your incarceration, including the 2023 increase. You do not receive the payments themselves while imprisoned, but the benefit amount will be higher when benefits restart.