What the 2023 COLA was and who received it
The 2023 SSDI Cost of Living Adjustment (COLA) was an 8.7 percent increase to monthly benefit amounts, effective January 2023. This was the largest COLA in four decades. If you received Social Security Disability Insurance (SSDI) in January 2023 or later that year, your monthly payment went up by this percentage automatically — you did not have to do anything to receive it.
The 8.7 percent figure applied to all SSDI beneficiaries: workers with disabilities, adult children of disabled or deceased workers, and spouses of disabled workers. The increase also applied to Supplemental Security Income (SSI) recipients, though SSI is a separate need-based program. If you received both SSDI and SSI, you got the increase on both payments.
The Social Security Administration (SSA) announced the 2023 COLA in October 2022, so beneficiaries had advance notice. Your January 2023 payment reflected the new amount. If you had questions about the exact dollar increase to your account, you could log into your my Social Security account online or call 1-800-772-1213 to confirm.
Key Takeaways
- The 2023 COLA raised all SSDI monthly payments by 8.7 percent, effective January 2023, with no action required from you.
- The increase applied to your primary benefit amount and any family members' benefits based on your work record.
- COLA amounts change every year based on inflation data from the third quarter of the previous year, so 2023's 8.7 percent will not repeat in 2024 or beyond.
- If you were already receiving SSDI before January 2023, the higher amount appeared in your bank account or check automatically.
How the 2023 COLA was calculated
The SSA calculates COLA each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index tracks price changes for food, housing, transportation, medical care, and other goods and services. The SSA looks at the average CPI-W for July, August, and September of the year before the COLA takes effect — so the 2023 COLA was based on summer 2022 inflation data.
Because inflation was unusually high in mid-2022, the resulting 8.7 percent COLA was much larger than typical. COLAs in recent years before 2023 had ranged from 1.3 to 5.9 percent. The 2023 figure was the highest since 1983. This does not mean future COLAs will be as large; they depend entirely on inflation in the months the SSA measures.
The SSA announced the 2023 COLA on October 13, 2022. By law, the announcement must happen in mid-October so beneficiaries and the public have time to understand the change before it takes effect in January.
What the 2023 COLA meant for your monthly payment
The 8.7 percent increase applied to your primary insurance amount (PIA) — the base monthly benefit the SSA calculates based on your work record. If you were receiving $1,200 per month before January 2023, your new amount was approximately $1,304 per month. If you were receiving $2,000 per month, your new amount was approximately $2,174 per month.
If you had family members receiving benefits on your work record — such as an adult child with a disability or a spouse — their payments also increased by 8.7 percent. The family maximum, which is the highest total amount all family members can receive combined, also increased by the same percentage.
The increase was permanent for 2023 and beyond. You did not lose any of the extra money in future months. However, the 2024 COLA was different — it was 3.2 percent — because inflation had changed. Each year brings a new COLA calculation based on that year's inflation data.
When you would have seen the increase in your account
If you received SSDI by direct deposit, the higher payment appeared in your bank account on your regular payment date in January 2023. Most SSDI beneficiaries are paid on the second, third, or fourth Wednesday of each month, depending on when they were born. Your payment date did not change; only the amount changed.
If you received SSDI by paper check, the January 2023 check reflected the new amount. If you received a combination of SSDI and SSI, both payments increased in January 2023.
If you were not yet receiving SSDI in January 2023 but began receiving it later that year, your initial payment amount would have been calculated using the 2023 benefit formula, which already included the COLA increase. You would not receive a separate adjustment later.
How 2023 COLA affected other benefits and programs
The 2023 COLA also increased the Supplemental Security Income (SSI) federal benefit rate. The SSI federal rate for an individual in 2023 became $914 per month (up from $841 in 2022). Some states add their own SSI supplements, and those amounts may have increased as well depending on state policy.
The COLA also affected the earnings test threshold — the amount of money you can earn per month while still receiving SSDI without a reduction. In 2023, the substantial gainful activity (SGA) threshold was $1,470 per month for non-blind workers and $3,822 per month for blind workers. These thresholds are tied to the national average wage index, not directly to COLA, but they are often adjusted in the same year.
If you were receiving Medicare or Medicaid as a result of your SSDI status, the COLA did not directly change your coverage. However, Medicare Part B premiums and deductibles are adjusted annually, and those changes were separate from the COLA increase.
What happened to the 2023 COLA if you were not yet receiving SSDI
If you were waiting for an SSDI decision in 2023 or had not yet filed, the 2023 COLA did not affect your case directly. However, when your benefit was eventually approved, the SSA would calculate your payment using the benefit formula in effect at the time of approval. If you were approved in 2023, your initial amount would reflect the 2023 COLA already built in. If you were approved in 2024 or later, your initial amount would reflect the COLA for that year.
If you had been denied SSDI and were appealing the decision, the COLA did not change the outcome of your appeal. Appeals are decided based on medical evidence and work history, not on benefit amounts. However, if your appeal was approved in 2023, your back pay (the money owed from the date you should have been approved) would be calculated using the 2023 benefit rates.
Frequently Asked Questions
Does the 2023 COLA mean my 2024 payment will also increase by 8.7 percent?
No. Each year's COLA is calculated separately based on that year's inflation data. The 2024 COLA was 3.2 percent, much lower than 2023. Future COLAs will depend on inflation in the months the SSA measures, so they could be higher or lower than 8.7 percent.
If I started receiving SSDI in March 2023, did I get the full 8.7 percent increase?
Your initial benefit amount in March 2023 was calculated using the 2023 benefit formula, which already included the 8.7 percent COLA. You did not receive a separate adjustment. The COLA is built into the formula used to calculate all new benefits approved in 2023.
What if I was receiving SSDI before January 2023 but missed my January payment?
Contact the SSA at 1-800-772-1213 or visit your local Social Security office. If your payment was not deposited or mailed, the SSA can investigate and reissue it. Bring your Social Security number and any documentation of the missed payment if you have it.
Does the COLA increase count as income for other programs I receive?
SSDI itself does not count as income for most federal programs. However, if you receive SSI in addition to SSDI, the increase to your SSI payment may affect your SSI amount if you have other income. Contact your local SSA office or your state's SSI program for details about your specific situation.
If I was receiving SSDI and then my benefits were suspended, did I lose the 2023 COLA increase?
If your benefits were suspended (not terminated), the COLA increase was applied to your benefit amount while it was suspended. If your benefits were later reinstated, you would receive the higher amount. If your benefits were terminated, you would need to file a new claim, and any new approval would use the current year's benefit formula.