What the 2018 COLA increase was

In 2018, Social Security Disability Insurance (SSDI) payments increased by 2 percent. This was the annual cost of living adjustment, or COLA, that Social Security makes each year to account for inflation. If you received SSDI in 2018, your monthly payment went up by 2 percent starting in January of that year.

The 2 percent figure came from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which Social Security uses to calculate COLA each October. The increase applied to all SSDI recipients, as well as to people receiving Social Security retirement and Supplemental Security Income (SSI).

The actual dollar amount of your increase depended on what you were receiving before the adjustment. Someone getting $1,000 per month would have received an additional $20 per month. Someone getting $1,500 would have received an additional $30 per month.

Key Takeaways

  • The 2018 COLA was 2 percent, meaning all SSDI payments increased by 2 percent starting January 2018.
  • Social Security calculates COLA using the Consumer Price Index, which measures inflation across the economy.
  • The increase was automatic — SSDI recipients did not have to do anything to receive it.
  • COLA adjustments vary from year to year depending on inflation, so the 2018 increase was different from increases in other years.

How the 2 percent increase affected your monthly payment

If you were receiving SSDI in December 2017, you saw the 2 percent increase reflected in your January 2018 payment. Social Security did not send a separate notice for most recipients — the higher amount straightforward appeared in your bank account or check.

The increase was permanent, not a one-time adjustment. Your new payment amount became your baseline, and future COLA increases (if any) would be calculated on top of that new amount. So if you received another COLA increase in 2019, it would be 2 percent of your 2018 amount, not 2 percent of your 2017 amount.

If you were also receiving benefits for a family member — such as a spouse or child — they received their own 2 percent increase as well. Family benefits are calculated separately, so each person's increase was 2 percent of their individual payment.

Why Social Security makes COLA adjustments

COLA exists because the cost of living changes over time. When prices for food, housing, medicine, and other necessities go up, the same monthly payment buys less than it did before. COLA adjusts payments so that recipients can maintain roughly the same purchasing power year to year.

Social Security has made COLA adjustments since 1975. Before that, Congress had to pass a separate law each time it wanted to increase payments. The automatic adjustment means that SSDI recipients do not have to wait for legislative action to keep up with inflation.

Not every year has a COLA increase. If inflation is very low or if prices actually fall, Social Security may announce a 0 percent COLA. This happened in 2009, 2010, and 2016. In those years, SSDI payments stayed the same as the year before.

How COLA is calculated each year

Social Security announces the COLA for the coming year in October, based on data from the Consumer Price Index. The CPI measures price changes for goods and services that people buy regularly — groceries, gas, rent, utilities, and medical care.

Specifically, Social Security uses the CPI-W, which tracks prices for urban wage earners and clerical workers. The agency compares the average CPI-W for July, August, and September of the current year to the same three months from the previous year. If there is an increase, that percentage becomes the COLA for the following January.

This means the COLA announced in October 2017 (which was 2 percent) took effect in January 2018. The COLA announced in October 2018 would take effect in January 2019, and so on.

What changed and what stayed the same in 2018

Your SSDI payment amount changed, but the rules about how you receive it did not. You still received your payment on the same day each month, through the same method (direct deposit or check). Your work incentives and the rules about how much you could earn while receiving SSDI remained the same.

However, other dollar amounts tied to SSDI did change in 2018. The substantial gainful activity (SGA) limit — the amount you can earn per month while still receiving SSDI — increased from $1,170 to $1,180. This is a separate adjustment from COLA and is announced by Social Security each year.

If you were receiving Supplemental Security Income (SSI) in addition to SSDI, your SSI payment also increased by 2 percent. The federal SSI payment standard for 2018 was $750 per month for an individual, which was higher than in 2017.

Comparing 2018 COLA to other years

The 2 percent COLA in 2018 was moderate compared to some other years. In 2017, the COLA was also 2 percent. In 2016, there was no COLA increase at all (0 percent). In 2015, the COLA was 1.7 percent.

Going back further, 2011 and 2012 each had a 3.6 percent COLA, which was higher than 2018. The highest COLA in recent decades was 5.8 percent in 2008, when inflation spiked. The lowest was 0 percent in 2009, 2010, and 2016.

COLA varies because inflation varies. Years with higher inflation produce higher COLA increases. Years with low inflation or deflation produce lower increases or no increase at all. There is no way to predict what the COLA will be in future years without knowing what inflation will be.

What to do if you did not see the increase

Most SSDI recipients received the 2 percent increase automatically in January 2018. However, if you did not see an increase in your payment, there are a few possible reasons.

If you had recently started receiving SSDI, your first payment might have been after the COLA took effect, so you would have received the higher amount from the start. If you were in a work trial period or had recently returned to work, your payment might have been affected by other rules about work and benefits.

If you believed you should have received the increase but did not, you could contact Social Security directly. You can call 1-800-772-1213 or visit your local Social Security office. Have your Social Security number and recent payment statements ready when you call.

Frequently Asked Questions

Does COLA explore to all SSDI recipients?

Yes, all SSDI recipients receive the same COLA percentage increase. The 2 percent in 2018 applied to everyone on SSDI, regardless of age, disability type, or payment amount. Family members receiving benefits based on your SSDI record also received the 2 percent increase.

Can I refuse the COLA increase?

No, COLA is automatic and applies to all recipients. You cannot opt out of the increase. If you have concerns about how the increase affects your benefits or your taxes, you can contact Social Security to discuss your specific situation.

Did the 2018 COLA increase affect Medicare premiums?

For most SSDI recipients, Medicare Part B premiums are held harmless, meaning the premium cannot increase more than your COLA increase. In 2018, this protection applied to most people. However, if you were a new Medicare enrollee or had other circumstances, your premium might have changed differently. Check your Medicare notice for details.

How is the 2018 COLA different from the 2019 COLA?

The 2018 COLA was 2 percent, while the 2019 COLA was 2.8 percent. Each year's COLA is based on that year's inflation data, so they are different. The 2019 increase was larger because inflation was higher in 2019 than it was in 2018.

What if I was not receiving SSDI in January 2018 — can I get the increase retroactively?

No, COLA increases explore only to people who were receiving SSDI when the increase took effect. If you started receiving SSDI after January 2018, your first payment would already include the 2018 COLA in the calculation, but you would not receive a separate retroactive payment for the months you were not receiving benefits.