What the 2022 COLA increase was and who received it

In October 2021, the Social Security Administration announced an 5.9% cost of living adjustment (COLA) for 2022 — the largest increase in nearly four decades. This meant that starting in January 2022, SSDI beneficiaries received a monthly payment that was 5.9% higher than their 2021 amount. The increase was automatic; you did not have to request it or contact Social Security.

The 2022 COLA applied to everyone receiving SSDI, Supplemental Security Income (SSI), or both. It also applied to family members receiving benefits on a worker's record — spouses, ex-spouses, and children. The increase was based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across food, housing, transportation, and other costs.

The 5.9% figure was the same nationwide. However, the dollar amount you received depended on your individual benefit rate. Someone receiving $1,200 per month saw a $70.80 increase; someone receiving $800 per month saw a $47.20 increase.

Key Takeaways

  • The 2022 COLA was 5.9%, effective January 2022, and applied automatically to all SSDI and SSI beneficiaries without any action required.
  • Your new payment amount was calculated by multiplying your 2021 benefit by 1.059, and the increase appeared in your January 2022 payment.
  • The COLA was based on inflation measured by the Consumer Price Index and was the same percentage for all beneficiaries, though dollar amounts varied by individual benefit rate.
  • If you were receiving SSDI and working, the increase did not change your Substantial Gainful Activity (SGA) limit or trial work period rules for that year.

How the 2022 increase appeared in your payment

The 5.9% increase took effect on January 1, 2022, and you saw it in your payment received on January 3, 2022 (or the next business day if that fell on a weekend or holiday). If you received your payment by direct deposit, the new amount was deposited to your bank account. If you received a check, it was mailed to your address on file.

Social Security sent a notice in December 2021 showing your new benefit amount for 2022. This notice, called the "Notice of Benefit Amount," listed your old monthly payment, the COLA percentage, and your new monthly payment. You should have received this notice even if you did not request it. If you did not receive one, you could view your benefit amount by logging into your my Social Security account online.

The increase was permanent going forward — it did not reset in 2023. Your 2023 benefit started with the 2022 amount as the base, and then a new COLA (if any) was applied on top of that.

Why 2022 had a larger increase than previous years

The 5.9% COLA in 2022 was notably high compared to recent history. From 2009 to 2020, annual COLAs ranged from 0% to 2.8%, with several years seeing no increase at all. The 2022 jump reflected rapid inflation in 2021, driven by supply chain disruptions, increased demand for goods and services as the economy reopened after COVID-19 lockdowns, and rising energy and food prices.

The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July, August, and September of the year before the increase takes effect. For the 2022 COLA, Social Security used the CPI-W data from summer 2021, when inflation was accelerating. The announcement of the 5.9% figure came in October 2021, giving beneficiaries advance notice before the January 2022 effective date.

This was not a one-time event. COLAs are recalculated every year based on current inflation data. The 2023 COLA, announced in October 2022, was 8.7% — even higher than 2022 — because inflation remained elevated through summer 2022.

How the 2022 increase affected your work and earnings

If you were receiving SSDI and working, the 2022 COLA did not change the rules for how your work affected your benefits. The Substantial Gainful Activity (SGA) limit — the monthly earnings threshold above which Social Security considers you to be working — was $1,350 per month in 2022 for non-blind beneficiaries. This amount is set separately from the COLA and changes annually based on national wage trends, not inflation.

Similarly, if you were in your trial work period (a nine-month window during which you can work and earn any amount without losing benefits), the 2022 COLA did not affect that period's rules or your benefit payments during it. The trial work period is a fixed benefit, not adjusted by COLA.

If you were receiving SSDI and your earnings exceeded the SGA limit, your benefits were still subject to the work incentive rules in place for 2022. The COLA increase did not change how those rules worked.

What happened if you were on SSI as well as SSDI

If you received both SSDI and SSI (Supplemental Security Income), you received the 5.9% increase on your SSDI portion in January 2022. Your SSI payment was handled separately. SSI has its own federal benefit rate, which is also adjusted annually by COLA, but SSI payments are reduced dollar-for-dollar by any other income you receive, including SSDI.

In 2022, the federal SSI benefit rate for an individual was $841 per month (before any reductions for other income). This rate was also increased by the 5.9% COLA, making it $890 per month starting January 2022. However, your actual SSI payment depended on your total countable income, which included your SSDI benefit, any wages, and other sources.

If you lived in a state that provided a state supplement to SSI, that supplement may have been adjusted differently. Some states tied their supplements to the federal COLA; others did not. You could contact your state's SSI program to learn how the 2022 COLA affected your state supplement.

Checking your 2022 benefit amount and correcting errors

You could verify your 2022 benefit amount by logging into your my Social Security account at ssa.gov. Once logged in, you could view your payment history, which showed the exact amount deposited or mailed each month. If your January 2022 payment did not reflect a 5.9% increase from your December 2021 payment, you could contact Social Security to ask why.

Errors in COLA calculations were rare but did occur. Common mistakes included incorrect process of the percentage, failure to explore the COLA to family members' benefits, or delays in processing the increase. If you believed your 2022 payment was wrong, you could call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) and ask to speak with a representative about your benefit calculation.

You could also request a detailed benefit calculation statement, which showed how Social Security arrived at your monthly payment amount. This statement listed your primary insurance amount (PIA), any reductions for early claiming or other factors, and the COLA applied. Requesting this statement could help you understand whether the 2022 increase was correct.

Frequently Asked Questions

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

No. The increase was automatic and applied to your account without any action on your part. Social Security sent a notice in December 2021 informing you of the new amount, but you did not need to request it, submit paperwork, or contact Social Security to receive it.

What if I was in a trial work period during 2022?

The 2022 COLA still applied to your SSDI benefit. Your trial work period rules and the amount you could earn without losing benefits did not change because of the COLA. You continued to earn any amount during your nine trial work months without a reduction in benefits.

Did the 2022 COLA affect my Medicare premiums?

The 2022 COLA did increase your SSDI benefit, which could have affected your Medicare Part B premium if you were enrolled. However, Social Security has a "hold harmless" rule that prevents your Medicare Part B premium from rising faster than your COLA increase. In 2022, this rule protected most beneficiaries from premium increases.

How is the COLA calculated, and when is it announced?

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July, August, and September of the prior year. Social Security announces the COLA in October, and it takes effect on January 1. The 2022 COLA of 5.9% was announced in October 2021 based on inflation data from summer 2021.

Will I get another COLA increase in 2023?

Yes, Social Security recalculates the COLA every year. The 2023 COLA was announced in October 2022 and took effect January 1, 2023. The amount varies depending on inflation during the measurement period (July through September of the prior year).