The 2022 SSDI benefit increase was 5.9 percent

In October 2021, the Social Security Administration announced that SSDI payments would increase by 5.9 percent starting in January 2022. This was the largest increase since 1982. The raise applied to everyone receiving SSDI — no action was required on your part.

The increase happened automatically because of how COLA works. Each year, Social Security looks at inflation data from the third quarter (July, August, September) and compares it to the same months the year before. When prices rise, the benefit amount rises with it. In 2021, inflation was high enough that the 5.9 percent adjustment was the result.

If you were receiving SSDI in January 2022, your payment went up that month. You did not need to contact Social Security or fill out any forms. The new amount straightforward appeared in your bank account or on your payment card.

Key Takeaways

  • SSDI payments increased 5.9 percent in January 2022, the largest increase in 40 years.
  • The increase was automatic — you did not need to do anything to receive it.
  • The raise was based on inflation measured between July and September 2021.
  • Everyone on SSDI received the same percentage increase, though the dollar amount varied based on what they were already receiving.

How much more money did people receive

The exact dollar amount of the increase depended on what you were already receiving. Someone getting $1,000 per month received an additional $59. Someone getting $1,500 per month received an additional $88.50. The percentage was the same for everyone, but the dollar amount was different.

Social Security does not publish a single "new average benefit" number for 2022 because the amount varies widely. Your own increase was calculated by taking your January 2022 payment amount and multiplying it by 1.059.

Why 2022 saw such a large increase

The 5.9 percent increase was unusual because inflation in 2021 was higher than it had been in decades. Prices for food, gas, housing, and other necessities rose sharply. Social Security's COLA formula is designed to track this inflation, so when inflation is high, the benefit increase is high.

From 2009 to 2020, COLA increases had been very small — some years as low as 0.3 percent. People on SSDI had grown used to tiny raises or no raise at all. The 2022 increase was a return to what COLA looked like in the 1980s and 1990s, when inflation was more common.

When the increase took effect

The 5.9 percent increase became part of your SSDI payment starting in January 2022. If you received your payment on the third Wednesday of the month, you saw the new amount on that date in January. If you received it on a different schedule (based on your birth date), the increase appeared on your regular payment day in January.

You received a notice in the mail in December 2021 telling you what your new benefit amount would be. If you did not receive this notice, you could log into your Social Security account online or call 1-800-772-1213 to confirm the new amount.

How COLA affects other benefits you might receive

If you were receiving both SSDI and Supplemental Security Income (SSI), both payments increased. If you were receiving SSDI as a family — meaning your children or spouse were also on your record — their payments increased by the same 5.9 percent.

If you had already reached full retirement age and switched from SSDI to regular Social Security retirement benefits, your retirement benefit also increased by 5.9 percent in January 2022. The COLA adjustment applies across all Social Security programs.

What happened to your Medicare or Medicaid coverage

The increase in your SSDI payment did not change your Medicare coverage. If you were on Medicare, your coverage stayed the same, and you continued to pay the same premiums (unless Medicare premiums themselves changed, which happens separately from COLA).

If you were on Medicaid, the increase might have affected your coverage in some states. A few states have income limits for Medicaid, and a higher SSDI payment could push you over that limit. Most states do not have this problem, but if you were concerned, you could contact your state Medicaid office to ask whether the increase changed your status.

Frequently Asked Questions

Did I have to do anything to get the 2022 increase?

No. The increase was automatic. Social Security calculated it and added it to your payment in January 2022 without any action from you. You received a notice in December 2021 showing the new amount.

What if I did not receive a notice about the increase?

You can check your new benefit amount by logging into your Social Security account at ssa.gov or by calling 1-800-772-1213. A representative can tell you what your current monthly payment is and confirm the increase took effect.

Does the COLA increase happen every year?

COLA happens every year, but the percentage varies. It is based on inflation from July through September of the previous year. Some years the increase is very small (0.3 percent in 2017), and some years it is large (5.9 percent in 2022). If inflation is zero or negative, there is no increase that year.

If I was not on SSDI in January 2022, can I get the increase retroactively?

No. COLA increases explore only to people receiving benefits when the increase takes effect. If you started SSDI after January 2022, your first payment reflected the new benefit amount, but you do not receive a lump sum for the months you were not on the program.