What the 2020 COLA did to SSDI payments

The 2020 Cost of Living Adjustment (COLA) increased SSDI payments by 1.6 percent, effective January 2020. If you were receiving SSDI in December 2019, your January 2020 payment was 1.6 percent higher than your December payment. The Social Security Administration calculated this percentage based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2018 through the third quarter of 2019.

This was a smaller increase than the previous year's 2.8 percent COLA. The 1.6 percent figure applied to all SSDI beneficiaries uniformly—there was no variation based on how much you received or how long you had been on the program. If you were not yet receiving SSDI in January 2020, this historical COLA does not affect your current payment amount, though your initial benefit calculation may reference 2020 wage records.

Key Takeaways

  • The 2020 COLA raised SSDI payments by 1.6 percent starting in January 2020, meaning a beneficiary receiving $1,000 per month in December 2019 would receive $1,016 in January 2020.
  • Social Security calculates COLA each year using inflation data from a specific three-month period and announces it in October of the prior year.
  • COLA adjustments are automatic—you do not need to contact Social Security or take any action to receive the increase.
  • The 2020 COLA was smaller than 2019's adjustment because inflation was lower during the measurement period.

How Social Security calculated the 2020 COLA

Social Security uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to measure inflation. For the 2020 COLA, the agency compared the CPI-W from July, August, and September 2019 to the same three months in 2018. The difference between those two periods was 1.6 percent, which became the 2020 COLA.

This method has been in place since 1975. The CPI-W tracks the cost of food, housing, transportation, medical care, and other goods and services that wage earners typically buy. It does not measure inflation specific to disabled people or retirees—it measures inflation for the general working population. Social Security applies the same percentage to all beneficiaries regardless of their circumstances.

The agency announces the COLA in October of the year before it takes effect. In October 2019, Social Security announced that the 2020 COLA would be 1.6 percent. This gave beneficiaries and the public two months' notice before the increase appeared in January payments.

What your payment looked like after the 2020 increase

The 2020 COLA was applied to your Primary Insurance Amount (PIA)—the base benefit amount Social Security calculated when you were first approved for SSDI. If your PIA was $1,000 per month in December 2019, it became $1,016 in January 2020. If your PIA was $800, it became $812. The increase was proportional across all benefit amounts.

If you were receiving a reduced benefit because you were also working and subject to the Substantial Gainful Activity (SGA) limit, the COLA still applied to your full PIA, though your actual payment might have been reduced or eliminated depending on your earnings. If you were receiving a family benefit as a spouse or child of an SSDI beneficiary, your portion also increased by 1.6 percent.

You would have seen the new amount in your January 2020 payment. Social Security did not send a separate notice for most beneficiaries, though you could check your My Social Security account online or call 1-800-772-1213 to confirm the new amount.

Why 2020's COLA was lower than 2019's

The 2019 COLA was 2.8 percent—nearly double the 2020 figure. The difference reflects how inflation changed between the two measurement periods. In 2018 and early 2019, inflation was higher, so the 2019 COLA was larger. By mid-2019, inflation had slowed, so the 2020 COLA was smaller.

COLA amounts vary year to year based on actual inflation. Some years the COLA is as high as 5 or 6 percent; other years it is below 1 percent. In 2021, for example, the COLA was 1.3 percent. In 2022, it jumped to 8.7 percent because inflation had risen sharply. The 2020 figure of 1.6 percent fell in the middle range of typical adjustments.

How to find your 2020 benefit amount now

If you were receiving SSDI in 2020 and are still receiving it today, your current payment includes the 2020 COLA plus all subsequent annual adjustments. You cannot isolate the 2020 increase from your current payment—it is built into your base amount and has been compounded by each year's COLA since then.

To see your current benefit amount and payment history, log into your My Social Security account at ssa.gov. You can view your payment for each month, including January 2020, by selecting "View Payment History" under the "Benefits" section. Your Social Security Statement also shows your current Primary Insurance Amount, which reflects all COLAs applied since your approval date.

If you believe your 2020 payment was calculated incorrectly, you can contact Social Security at 1-800-772-1213 or visit your local Social Security office. However, the 2020 COLA is now historical—it cannot be changed. If you are disputing a current payment amount, the issue is usually related to your current earnings, family composition, or a change in your circumstances, not the 2020 adjustment itself.

Frequently Asked Questions

Did everyone on SSDI get the same 1.6 percent increase in 2020?

Yes. Every SSDI beneficiary received the same 1.6 percent increase to their Primary Insurance Amount in January 2020, regardless of how much they were receiving or how long they had been on the program. The only exception was beneficiaries whose payments were reduced or eliminated due to work earnings or other factors—their base amount still increased, but their actual payment might not have changed if they were already at a reduced level.

What if I was not receiving SSDI in January 2020?

If you were approved for SSDI after January 2020, your initial benefit amount was calculated using your own earnings record and the benefit formula in effect at the time of approval. The 2020 COLA does not directly affect you, though your benefit calculation may reference wage records from 2020 or earlier years. Your benefit will include all COLAs from the year you were approved forward.

Can I get back pay for the 2020 COLA if I missed it?

No. The 2020 COLA was applied automatically to all beneficiaries in January 2020. If you were receiving SSDI at that time, you received the increase. If you were not yet approved, you cannot receive retroactive COLA adjustments. Your benefit going forward includes all applicable COLAs from your approval date.

How does the 2020 COLA compare to recent years?

The 2020 COLA of 1.6 percent was lower than 2019's 2.8 percent but higher than 2021's 1.3 percent. In 2022, the COLA jumped to 8.7 percent due to higher inflation. Each year's adjustment depends on inflation during that specific measurement period, so COLAs vary significantly from year to year.