SSDI benefits increased by 8.7% in 2023, the largest raise in four decades

Yes, SSDI benefits increased in 2023. The Cost of Living Adjustment (COLA) for that year was 8.7%, meaning the average SSDI payment rose by that percentage starting in January 2023. This was the largest annual increase since 1981, driven by inflation that peaked in 2022.

If you received SSDI in 2022, your January 2023 payment reflected this increase automatically. You did not need to request it or contact Social Security. The raise applied to your primary benefit amount — the base monthly payment before any taxes or other deductions.

The 2023 COLA affected not only SSDI recipients but also Supplemental Security Income (SSI) recipients and Social Security retirement beneficiaries. Spouses and children receiving benefits on your record also received the same percentage increase.

Key Takeaways

  • The 2023 COLA of 8.7% was applied automatically to all SSDI payments starting January 2023, with no action required from you.
  • This increase was the largest annual raise in over 40 years, reflecting the high inflation of 2022.
  • The raise applied to your primary benefit amount, and family members on your record received the same percentage increase.
  • You can view your new 2023 benefit amount in your Social Security account online or by calling 1-800-772-1213.

How the 2023 increase was calculated

Social Security calculates COLA each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across food, housing, transportation, and other costs. The 2023 COLA of 8.7% came from comparing the average CPI-W for the third quarter of 2022 to the average for the third quarter of 2021.

This calculation method is set by law and does not change year to year. Social Security announces the COLA in October of the prior year, so the 8.7% figure was public in October 2022, months before the January 2023 payment increase took effect.

The 8.7% figure applied uniformly to all SSDI beneficiaries, regardless of how much you received. A person getting $800 per month received an $69.60 raise; a person getting $1,500 per month received a $130.50 raise. The percentage was the same, but the dollar amount depended on your individual benefit amount.

What changed in your January 2023 payment

Your January 2023 SSDI payment included the 8.7% increase. If you had set up direct deposit, the new amount appeared in your bank account on the payment date for your birth date group (typically the second, third, or fourth Wednesday of the month). If you received a paper check, it reflected the new amount.

Social Security mailed a notice to all SSDI recipients in December 2022 showing the new benefit amount for 2023. If you did not receive this notice, you can view your current benefit amount by logging into your my Social Security account at ssa.gov or by calling 1-800-772-1213.

The increase also affected your Medicare Part B premium if you were enrolled. Medicare premiums are deducted from SSDI payments for most beneficiaries, so your net increase (the amount you actually received) depended on whether your Medicare premium changed.

Why 2023 saw such a large increase

The 8.7% COLA reflected inflation that spiked in 2022. Prices for gasoline, groceries, housing, and utilities rose sharply during that year, pushing the CPI-W higher than it had been in decades. The COLA formula captures this inflation and passes it through to beneficiaries the following January.

Large COLA increases are rare. Before 2023, the most recent COLA above 5% occurred in 1982. Most years between 2010 and 2020 saw COLA increases below 2%. The 2023 increase was exceptional because inflation itself was exceptional.

It is important to understand that COLA is not a raise in the sense of improved purchasing power. It is meant to keep your benefit from losing value as prices rise. An 8.7% increase in your payment offset roughly 8.7% inflation, leaving your actual buying power roughly the same as the year before.

How to check your 2023 benefit amount

The fastest way to see your current SSDI payment is to log into your my Social Security account at ssa.gov using your username, password, or sign-in.gov credentials. Once logged in, click "Benefit Verification" to see your current monthly amount.

If you do not have an online account, you can call Social Security at 1-800-772-1213 (TTY 1-800-325-0778). Have your Social Security number ready. A representative can tell you your current benefit amount and answer questions about the 2023 increase.

You can also request a printed benefit verification letter by mail, which takes about two weeks. This letter is useful if you need to show your income to a landlord, lender, or government program.

What happens to SSDI increases in future years

COLA is recalculated every year based on inflation data from the prior year. If inflation is lower, the COLA will be lower. If inflation is higher, the COLA will be higher. There is no may provide that future increases will match 2023's 8.7%.

For example, the 2024 COLA was 3.2%, reflecting lower inflation in 2023. The 2025 COLA was 2.5%. Each year's increase is announced in October and takes effect the following January.

You do not need to do anything to receive the annual COLA. It is applied automatically to your account. If you stop receiving SSDI for any reason and later become may have access to again, your new benefit amount will reflect all COLA increases that occurred while you were not receiving benefits.

Frequently Asked Questions

Did I have to do anything to get the 2023 increase?

No. The 8.7% increase was applied automatically to all SSDI payments in January 2023. You did not need to contact Social Security, submit a form, or take any action. If you were receiving SSDI on January 1, 2023, you received the increase.

Does the COLA increase count as income for other programs?

It depends on the program. SSI recipients may see their SSI payment reduced if the COLA increase pushes their total income above the SSI limit, though Social Security has special rules to protect some of the increase. For other programs like SNAP or housing information, contact the program directly to ask how COLA increases affect your case.

What if I think my 2023 benefit amount is wrong?

Check your benefit verification letter or your my Social Security account to confirm the amount. If it does not match what you expected, call Social Security at 1-800-772-1213. A representative can review your record and explain how your benefit was calculated.

Will my family members' benefits also increase?

Yes. Spouses, ex-spouses, and children receiving benefits on your SSDI record all received the same 8.7% increase in January 2023. Each family member's payment increased by that percentage, though the dollar amount of the increase varied based on their individual benefit amount.

Can I get back pay for the 2023 increase if I missed it?

If you were may have access to to SSDI in January 2023 but did not receive the increase for some reason, contact Social Security when ready. Explain the situation and provide any documentation you have. Social Security can review your account and issue back pay if an error occurred.