The 2023 COLA increase went into effect in January 2023

Social Security announced the 2023 cost of living adjustment (COLA) in October 2022, and the increase appeared in benefit payments starting in January 2023. The 2023 COLA was 8.7 percent — the largest increase in four decades — because inflation had risen sharply through 2021 and 2022.

If you receive SSDI, you saw this increase reflected in your January 2023 payment. The Social Security Administration (SSA) does not send a separate notice for COLA increases; the higher amount straightforward appears in your bank account or payment method on your regular payment date. Most SSDI recipients receive payments on the third of each month, though some receive them on the 11th or 22nd depending on their birth date.

The 2023 COLA was permanent — it did not expire or revert. Every payment you receive from that point forward includes the 8.7 percent increase, and future COLA adjustments build on top of it.

Key Takeaways

  • The 2023 COLA of 8.7 percent took effect with your January 2023 payment, not a separate check or notice.
  • This was the largest COLA increase since 1981, driven by inflation in 2021 and 2022.
  • The increase is permanent and applies to all future payments unless Congress changes the law.
  • You can check your current benefit amount by logging into your my Social Security account or calling 1-800-772-1213.

How the announcement and payment date work

The SSA announces the COLA for the coming year in mid-October. This announcement is public — you can find it on the Social Security website — and it applies to all SSDI recipients, all Supplemental Security Income (SSI) recipients, and all retired workers receiving Social Security.

The increase then takes effect on January 1 of the following year. However, you do not receive a lump sum or a separate payment. Instead, your regular monthly payment amount increases, and you see the higher amount in your next scheduled payment in January. If your payment date is the 3rd of the month, you will see the increased amount on January 3rd. If it is the 11th or 22nd, you will see it on those dates in January.

The SSA does send a notice called the "Social Security Benefit Statement" each year, usually in December, which shows your new benefit amount. This is the official record of your increase, but it arrives after the increase has already taken effect in your payment.

Why 2023 was different from other years

The 2023 COLA of 8.7 percent was unusually large. Most years, COLA increases range from 1 to 3 percent. The 2023 increase was driven by inflation that peaked in mid-2022 — the Consumer Price Index (CPI) rose faster than it had in decades — and the COLA formula captures that inflation to adjust benefits.

The year before, in 2022, the COLA was 5.9 percent, which was also well above the historical average. In 2024, the COLA dropped to 3.2 percent as inflation cooled. This shows that COLA is not fixed; it changes each year based on inflation data from the previous year.

What changed in your payment

If you were receiving SSDI in January 2023, your monthly payment increased by 8.7 percent. For example, if your payment was $1,000 per month in December 2022, it became $1,087 per month starting in January 2023.

This increase applied whether you were working, not working, or in any other circumstance. COLA is automatic and universal for all SSDI recipients. It does not depend on your income, your work status, or your medical condition.

If you were not yet receiving SSDI in January 2023 — because you had not yet been approved — the 2023 COLA did not explore to you at the time of approval. Instead, your benefit amount would be calculated based on your earnings record, and any future COLA increases would explore to that amount.

Checking your current benefit amount

You can see your current SSDI payment amount in two ways. The easiest is to log into your my Social Security account at ssa.gov. You will need to create an account with a username and password, or you can use a third-party login like Google or Facebook. Once logged in, you can see your current benefit amount, your payment history, and your annual benefit statement.

If you do not have an online account, you can call the Social Security toll-free number at 1-800-772-1213. A representative can tell you your current payment amount and answer questions about your account. The line is open Monday through Friday, 7 a.m. to 7 p.m. Eastern time. Wait times are usually shorter early in the morning or late in the week.

You can also visit your local Social Security office in person, though you may need to make an appointment. Find your nearest office on the SSA website.

How COLA affects other benefits and programs

The 2023 COLA increase affected not only SSDI but also Supplemental Security Income (SSI), Social Security retirement benefits, and Social Security survivor benefits. All of these programs use the same COLA formula and increase on the same schedule.

The increase also affected the federal benefit rate for SSI, which is the maximum monthly payment amount. In 2023, the federal SSI benefit rate increased from $841 to $914 per month for individuals. Some states add their own supplement to SSI, and those state amounts also increased.

If you receive both SSDI and SSI, or if you receive SSDI and are married to someone receiving Social Security, the COLA increase applied to each benefit separately.

What happens if you missed the increase

If you did not see the 2023 COLA increase in your January 2023 payment, there are a few possible reasons. You may have been approved for SSDI after January 2023, in which case your benefit was calculated without the 2023 COLA built in. You may have had a work incentive that reduced your payment. Or there may have been an error in your account.

The best step is to check your my Social Security account or call 1-800-772-1213 to confirm your current payment amount. If you believe you should have received the increase and did not, ask the representative to review your account and explain the reason.

Frequently Asked Questions

Did everyone receiving SSDI get the 8.7 percent increase in January 2023?

Yes, all SSDI recipients who were receiving payments in January 2023 received the 8.7 percent increase. It was automatic and applied to everyone. If you were not yet approved for SSDI in January 2023, the increase did not explore to your initial benefit amount, but future COLA increases will explore to whatever amount you receive.

Can I get the 2023 COLA increase if I explore for SSDI now?

No. COLA increases are permanent once they take effect, but they only explore to people already receiving benefits when the increase happens. If you are approved for SSDI after 2023, your benefit will be calculated based on your earnings record and current rules, and future COLA increases will explore to that amount.

What if I think my payment amount is wrong?

Log into your my Social Security account to see your current payment amount and your payment history. If the amount looks incorrect, call 1-800-772-1213 and ask a representative to review your account. They can explain how your benefit was calculated and whether any adjustments have been made.

Will there be another COLA increase in 2024?

Yes. The SSA announces the COLA for each year in October, and it takes effect in January. The 2024 COLA was 3.2 percent. Future COLA amounts depend on inflation data and are announced each October for the following year.