The 2019 COLA increased SSDI payments by 2.8 percent

In 2019, Social Security announced a Cost of Living Adjustment (COLA) of 2.8 percent for all beneficiaries receiving SSDI and retirement benefits. This meant that if you received SSDI in December 2018, your January 2019 payment was 2.8 percent higher than what you had been receiving.

The 2019 COLA was calculated based on inflation data from the third quarter of 2018, measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers. Social Security uses this specific inflation measure every year to determine whether benefits will increase and by how much.

This adjustment happened automatically — you did not need to do anything to receive it. The higher payment amount appeared in your January 2019 benefit check or direct deposit.

Key Takeaways

  • The 2019 COLA of 2.8 percent was applied to all SSDI payments starting in January 2019, with no action required from beneficiaries.
  • COLA is based on inflation data from the third quarter of the previous year and affects both SSDI and Social Security retirement benefits equally.
  • The actual dollar increase depended on your individual benefit amount — someone receiving $1,000 per month saw a $28 increase, while someone receiving $1,500 saw a $42 increase.
  • COLA adjustments are announced in October of each year and take effect the following January for all beneficiaries.

How the 2019 COLA was calculated

Social Security calculates COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks the cost of goods and services that Americans buy. The agency looks at the average CPI-W for July, August, and September of the year before the adjustment takes effect. If that average is higher than the average from the same three months in the previous year, beneficiaries receive a COLA.

For 2019, the inflation increase between the third quarter of 2017 and the third quarter of 2018 was 2.8 percent. This percentage was then applied to every SSDI beneficiary's monthly payment amount, regardless of how much they received.

If there is no inflation — or if inflation is negative — Social Security does not reduce payments. In years with no inflation increase, beneficiaries receive the same payment amount as the previous year.

What the 2019 COLA meant for your monthly payment

The 2.8 percent increase translated to different dollar amounts depending on how much SSDI you were receiving. Someone getting $1,000 per month received an additional $28 per month. Someone receiving $1,200 per month received an additional $33.60 per month. The increase was proportional to your existing benefit amount.

For beneficiaries who also received Supplemental Security Income (SSI), the COLA applied only to the SSDI portion of their payment. SSI has its own separate rules and payment structure, though SSI recipients also typically received a COLA increase in January 2019.

The 2019 COLA also affected the earnings limit for SSDI work incentives. The Substantial Gainful Activity (SGA) limit — the amount you can earn per month while still receiving SSDI — increased from $1,170 to $1,220 in 2019, based on the same COLA percentage.

When you found out about the 2019 COLA

Social Security announced the 2019 COLA in October 2018, giving beneficiaries three months' notice before the increase took effect in January 2019. The agency mailed a notice to all beneficiaries explaining the new payment amount and the effective date.

If you were receiving SSDI by October 2018, you received this notice automatically. If you were not yet receiving benefits, the 2019 COLA would have been factored into your first payment once you were approved.

Why COLA matters for SSDI recipients

COLA adjustments help SSDI payments keep pace with inflation so that your benefit maintains roughly the same purchasing power from year to year. Without COLA, the same monthly payment would buy less and less as prices for food, housing, and medical care increase.

For people living on a fixed SSDI income, even a small COLA increase can make a difference in covering basic expenses. The 2.8 percent increase in 2019 was larger than some years — in 2017 and 2018, for example, the COLA was 2.0 percent and 2.0 percent respectively.

COLA also affects other aspects of SSDI beyond the monthly payment amount. The earnings limits, the amount of work incentives, and other thresholds tied to benefit amounts all adjust by the same percentage.

How 2019 COLA compared to other years

The 2019 COLA of 2.8 percent was moderate compared to some years but higher than others. In 2018, beneficiaries received a 2.0 percent COLA. In 2017, the COLA was also 2.0 percent. In 2016, there was no COLA at all — a 0 percent adjustment — because inflation was too low.

The year before 2019, in 2020, the COLA was 1.3 percent, which was lower than 2019. COLA amounts vary year to year depending entirely on inflation data and are not predictable in advance.

Frequently Asked Questions

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

No. The COLA increase was automatic for all SSDI beneficiaries. You did not need to contact Social Security or take any action. The higher payment amount appeared in your January 2019 benefit check or direct deposit.

What if I started receiving SSDI after January 2019?

The 2019 COLA had already taken effect by the time you were approved. Your initial benefit amount would have been calculated using the post-COLA payment rates, so you would not receive a separate increase later.

Does COLA affect SSI payments the same way?

SSI beneficiaries also received a COLA increase in January 2019, but SSI has different rules than SSDI. If you receive both SSDI and SSI, the COLA applied to each program according to its own rules.

Will there be a COLA increase every year?

COLA increases happen most years, but not every year. If inflation is zero or negative, there is no COLA increase. The amount of the increase varies based on inflation data from the previous year's third quarter.

How does COLA affect my work incentives?

The Substantial Gainful Activity (SGA) limit and other SSDI work incentive thresholds increase by the same COLA percentage. In 2019, the SGA limit rose to $1,220 per month, up from $1,170 in 2018.