Throughout the years of assisting our clients with their Social Security disability benefits, we are often asked, “Does Social Security disability get cost-of-living increases?” The short answer is yes. Each year, the annual cost of living adjustment (COLA) ensures Social Security benefits keep pace with inflation, protecting the value of your income. The Social Security Administration (SSA) provides a COLA notice each year, which is often available through a COLA notice online account, to notify beneficiaries of the upcoming benefit increase that typically takes effect the following January.
In 1973, cost-of-living-adjustments, also known as COLAs, were introduced to allow SSDI benefits to keep pace with inflation. These COLAs are based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and are calculated monthly by the Bureau of Labor Statistics. Today, COLA increases impact more than 71 million Social Security beneficiaries nationwide, including those receiving SSDI and SSI.
How SSDI Payment Structures Change
The government calculates the SSD COLA by comparing the average CPI-W for the third quarter of the year when the most recent COLA became effective, in this case 2021, to the average CPI-W for the third quarter of the current year. If there is an increase, it is rounded to the nearest tenth of one percent, and that becomes the amount of the benefit increase for the upcoming year.
For example, if inflation trends indicate a rate of approximately 2.5 percent, that percentage serves as the basis for the adjustment applied to monthly Social Security benefits. In recent discussions, many beneficiaries have inquired about reports of a $600 Social Security increase for SSI. While that figure may vary depending on eligibility and program type, COLAs remain the official method for calculating annual adjustments that affect benefit payments beginning each January, including projections extending into January 2026.
Will Social Security Disability Get A Raise In 2023?
Yes. As of September 2022, more than 7.7 million workers were receiving Social Security disability benefits. These recipients will receive an 8.7% increase in the Social Security Administration (SSA) starting January 2023. According to the SSA, the average monthly SSDI benefit for a disabled worker is expected to increase by approximately $119 due to the 2023 annual COLA.
This will raise the typical monthly Social Security benefit from $1,364 to $1,483. Discussions around a $600 Social Security increase for SSI highlight how important these adjustments are for millions of recipients across the 71 million Social Security beneficiaries nationwide, even though the actual COLA percentage determines the exact raise. Beneficiaries should expect each future COLA notice online and adjustment to be announced later in the year, with benefit increases taking effect the following January, including anticipated updates heading into January 2026.
California Social Security Disability Benefits Attorneys
At Peña & Bromberg, PLC, we understand that navigating the complex Social Security disability process can be overwhelming. Since the majority of initial disability applications are denied, having experienced legal representation can make all the difference in achieving a successful outcome.
Our dedicated legal team is committed to helping you obtain all the Social Security and Supplemental benefits you are entitled to, including increases tied to the annual cost of living adjustment, while ensuring you maintain eligibility for these programs. We take great care to safeguard your personal information throughout the process while advocating for the maximum benefit increase available to you. If you or a loved one needs assistance with obtaining SSDI benefits, please call our office for a free consultation or complete the contact form on our website.