What the 2019 COLA increase was

In 2019, Social Security Disability Insurance (SSDI) payments increased by 2.8 percent. This was the annual cost of living adjustment, or COLA, that Social Security applies each year to account for inflation. The increase took effect in January 2019, so anyone receiving SSDI in December 2018 saw a higher payment arrive in January.

The 2.8 percent figure came from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which Social Security uses to calculate whether the cost of living has risen enough to warrant a raise. Because inflation was moderate in 2018, the 2.8 percent increase was smaller than some years and larger than others.

Key Takeaways

  • The 2019 COLA raised SSDI payments by 2.8 percent for all recipients, effective January 2019.
  • The increase amount depended on your individual payment — someone receiving $1,000 per month would have seen roughly a $28 increase, while someone receiving $1,500 would have seen roughly $42 more.
  • COLA increases are automatic and happen once per year; you do not need to do anything to receive the raise.
  • The 2019 increase was calculated using inflation data from the previous year, so it reflected the cost of living changes that occurred in 2018.

How much your payment went up

The 2.8 percent increase applied to whatever amount you were receiving in December 2018. This means the dollar amount of the raise was different for each person. Someone receiving $800 per month would have received an increase of roughly $22, while someone receiving $1,200 per month would have received roughly $34 more.

Your new payment amount appeared automatically in your January 2019 direct deposit or check. Social Security mailed notices in December 2018 telling recipients what their new payment would be, so you could have seen the exact figure before it arrived.

Why 2.8 percent was the number that year

Social Security calculates the COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers, a measure of inflation published by the U.S. Bureau of Labor Statistics. In 2018, this index showed that prices had risen 2.8 percent compared to the previous year, so that became the COLA for 2019.

The COLA is never negative — if inflation is flat or prices actually fall, Social Security does not reduce payments. However, the percentage varies from year to year depending on actual inflation. In some years it has been as low as 0 percent (no increase) and in other years it has been above 3 percent.

When you received the increase

The 2019 COLA took effect on January 1, 2019. If you were receiving SSDI in December 2018, your January 2019 payment reflected the 2.8 percent increase. If you began receiving SSDI after January 2019, your first payment already included the increased amount — there was no separate "raise" to wait for.

Social Security sent notices in mid-December 2018 to all current recipients showing the new payment amount. If you did not receive a notice and your payment seemed unchanged, you could have contacted Social Security to verify the amount.

How COLA affects your other benefits

If you were receiving Supplemental Security Income (SSI) in addition to SSDI, or if family members were receiving benefits based on your SSDI record, they also received the 2.8 percent increase in January 2019. COLA applies across all Social Security programs at the same time.

The increase also affected the earnings limit for work incentives. Some SSDI recipients can work and still receive benefits up to a certain earnings threshold; that threshold increases with COLA each year. In 2019, the substantial gainful activity (SGA) limit — the earnings level that can affect your benefits — also rose to reflect the 2.8 percent adjustment.

What happened after 2019

Each January, Social Security announces a new COLA based on inflation from the previous year. The 2020 COLA was 1.7 percent, lower than 2019 because inflation was lower in 2019. The 2021 COLA was 1.3 percent. These changes mean that the raise you received in 2019 was not the same as the raise you received in 2020 or 2021.

If you are still receiving SSDI, you continue to receive a COLA adjustment each year. The amount varies, but the process is the same: Social Security calculates it automatically, and it takes effect in January.

Frequently Asked Questions

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

No. The increase was automatic. If you were receiving SSDI in December 2018, the higher payment appeared in January 2019 without any action on your part. Social Security handles the calculation and payment adjustment on its own.

What if I started receiving SSDI after January 2019?

Your first payment would already have included the 2.8 percent increase. You would not receive a separate raise later — the higher amount was built into your benefit from the start.

Did the 2019 COLA affect my Medicare or Medicaid?

The COLA itself does not change your Medicare or Medicaid status. However, if the increase in your SSDI payment affected your income level, it could have changed your Medicaid coverage in some states. Contact your state Medicaid office if you had questions about how the payment increase affected your coverage.

Why was the 2019 increase only 2.8 percent?

The percentage is determined by inflation in the previous year. In 2018, the Consumer Price Index rose 2.8 percent, so that became the 2019 COLA. The amount is not chosen by Social Security — it is based on actual price changes in the economy.