What the extra money is and where it comes from

The extra money in your SSDI payment this month is a Cost of Living Adjustment (COLA). Social Security calculates this once a year based on inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). When prices rise, your benefit rises by the same percentage.

The Social Security Administration announces the COLA in October and it takes effect in January. The amount varies year to year — some years it is less than 1 percent, other years it has been over 8 percent. You do not have to do anything to receive it. If you are on SSDI, the increase is automatic.

The increase shows up in your January payment, though the Social Security Administration mails notices in December telling you the exact dollar amount. If you have direct deposit, the money lands in your bank account on the third day of the month (or the first business day after if the third falls on a weekend or holiday).

Key Takeaways

  • COLA increases happen automatically every January for all SSDI recipients; you do not need to contact Social Security or take any action.
  • The amount of your increase is based on inflation from the previous year and is the same percentage for everyone on SSDI.
  • Social Security mails a notice in December showing your new payment amount, and the increase appears in your January payment.
  • If you receive both SSDI and Supplemental Security Income (SSI), you get a separate COLA for each program, and the percentages may differ.

How much extra you are receiving

The exact dollar amount depends on your current SSDI payment. If your monthly benefit is $1,200 and the COLA is 3.2 percent, you receive an additional $38.40 per month. A person receiving $800 per month would receive about $25.60 extra.

You can find your new payment amount in the notice Social Security mails in December, or by logging into your my Social Security account at ssa.gov. Under "Benefit Verification," you will see your current monthly amount. The notice also shows the COLA percentage for that year.

If you have questions about the math or believe the amount is wrong, you can call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) and ask to speak with a representative. Have your Social Security number ready.

When the money hits your account

The COLA increase appears in your payment on the third of the month, or the first business day after if the third is a weekend or holiday. This is the same schedule as your regular SSDI payment — the date does not change in January.

If you receive your payment by direct deposit, the money arrives in your bank account on that date. If you receive a paper check, it arrives in the mail within a few days of the third. Some people receive a debit card issued by Social Security; the money loads onto that card on the payment date.

You can check your payment schedule on your my Social Security account. Log in, go to "Benefit Verification," and look for "Payment Schedule" to see the exact dates for the year.

What to do if you do not see the increase

If your January payment arrives and the amount is the same as December, contact Social Security. This can happen if there was a processing error, if you recently had a work-related change that offset the COLA, or if your case is under review for another reason.

Call 1-800-772-1213 and explain that you did not receive your COLA increase. Have your Social Security number and your December payment amount ready. A representative can check your account and tell you whether the increase was applied.

If the increase was not applied due to an error, Social Security will correct it and backpay you the difference. This usually takes two to four weeks. If your case is under review for a different reason, the representative will explain what is happening and when you can expect the COLA to be added.

How COLA affects other benefits you receive

If you receive both SSDI and Supplemental Security Income (SSI), you get a separate COLA for each program. The SSDI COLA is based on the CPI-W. The SSI COLA is also based on inflation but is calculated separately, so the percentages may be slightly different in some years.

If you receive SSDI and are also receiving Medicare, the COLA does not change your Medicare premium directly. However, if your SSDI payment increases, your income may change, which can affect whether you owe income tax on your benefits or whether you remain under certain income limits for other programs.

If you receive SSDI and are also receiving Medicaid or other state benefits, check with your state program to see whether the COLA increase affects your case. Some states count the increase as income and may reduce other benefits; others do not. Your state Medicaid office can tell you how the COLA affects you.

Planning for next year's COLA

The COLA for next year is announced in October and takes effect in January. You can follow the announcement through Social Security's website or by signing up for email updates at ssa.gov. The announcement usually happens in the second week of October.

If you budget your money month to month, the COLA increase is a good time to review your expenses and see whether you can set aside a small amount for emergencies or unexpected costs. Even a small increase can add up over the year.

If you are working and earning income, remember that the COLA increase does not change the amount you can earn before your SSDI payment is reduced. The earnings limit stays the same. For 2024, you can earn up to $1,550 per month without a reduction (the limit changes each year). The COLA increase is separate from work-related income rules.

Frequently Asked Questions

Do I have to do anything to get my COLA increase?

No. The increase is automatic if you are on SSDI. You do not need to contact Social Security, fill out a form, or take any action. The money appears in your January payment without you doing anything.

What if I think my COLA amount is wrong?

Call Social Security at 1-800-772-1213 with your Social Security number and your December payment amount. A representative can verify the COLA percentage for that year and check whether it was applied correctly to your account. If there was an error, you will be backpaid the difference.

Does the COLA increase affect my Medicare or Medicaid?

Medicare premiums are not directly affected by COLA. However, if you receive Medicaid or other state benefits, the income increase may affect your case. Contact your state Medicaid office to ask whether the COLA changes your benefits.

Can I get my COLA increase early?

No. The COLA takes effect in January and appears in your payment on the third of the month (or the first business day after). Social Security does not issue it early or in a separate payment.

What if I missed the December notice about my COLA?

You can see your new payment amount by logging into your my Social Security account at ssa.gov and going to "Benefit Verification." You can also call 1-800-772-1213 and ask a representative to read your new amount to you.