The 2018 COLA increased SSDI payments by 2 percent

In December 2017, the Social Security Administration announced a 2 percent cost of living adjustment (COLA) for 2018. This meant that starting in January 2018, the monthly benefit amount for every SSDI recipient increased by 2 percent from what they received in 2017. For someone receiving $1,000 per month in 2017, the new amount became $1,020 per month in 2018.

The 2 percent figure came from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across the economy. Social Security calculates the COLA each year using the average CPI-W for July, August, and September of the prior year. That three-month average determines whether benefits go up, stay flat, or in rare cases go down the following January.

This was the first COLA increase after three years with no adjustment. From 2016 through 2017, inflation had been too low to trigger any increase, so recipients received the same dollar amount both years. The 2018 increase reflected a return to measurable inflation in the economy.

Key Takeaways

  • The 2018 COLA of 2 percent applied automatically to all SSDI beneficiaries starting January 2018 — no action was required on your part.
  • The increase was based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, measured from July through September 2017.
  • Recipients who had not received a COLA since 2015 saw their first benefit increase in three years with the 2018 adjustment.
  • The 2 percent increase also raised the earnings limit for Substantial Gainful Activity (SGA), which determines whether you can work while receiving SSDI.

How the 2018 COLA affected your monthly payment

The 2 percent increase applied to your primary insurance amount — the base monthly benefit Social Security calculates for you. If you were receiving SSDI in December 2017, your January 2018 payment reflected the 2 percent bump automatically. You did not need to contact Social Security or take any action to receive it.

The exact dollar increase depended on your individual benefit amount. Someone receiving $500 per month got a $10 increase. Someone receiving $2,000 per month got a $40 increase. Social Security sent a notice in December 2017 or early January 2018 showing your new payment amount, though some recipients did not receive a notice if their benefit had not changed in prior years.

If you were receiving benefits as a family — meaning your spouse or children also collected on your record — each person's benefit increased by 2 percent. The total family payment also went up by 2 percent, though Social Security's family maximum (a cap on total benefits paid on one worker's record) could affect how the increase was distributed among family members.

The 2018 COLA and the Substantial Gainful Activity limit

The 2 percent COLA also raised the Substantial Gainful Activity (SGA) earnings limit for 2018. The SGA limit is the amount of monthly income you can earn from work before Social Security considers you no longer disabled and stops your benefits. In 2017, the SGA limit was $1,170 per month. For 2018, it rose to $1,180 per month.

This $10 monthly increase meant you could earn slightly more before triggering a work-related review of your case. However, the SGA limit is a threshold, not a gradual reduction — if you earned above it consistently, Social Security would begin the process of reviewing whether you still met the definition of disability. Earning below the SGA limit did not may provide your benefits would continue, but exceeding it raised the likelihood of a work capacity review.

The 2018 SGA limit applied to non-blind beneficiaries. Blind beneficiaries had a separate, higher SGA limit of $1,970 per month in 2018, which also increased by 2 percent from the prior year.

Why 2018 was the first increase in three years

From 2009 through 2015, SSDI recipients received annual COLA increases. Then inflation slowed. In 2016 and 2017, the Consumer Price Index showed so little inflation that no COLA was triggered — beneficiaries received the same dollar amount both years. This happened because the COLA formula requires measurable inflation to justify an increase, and the economy straightforward was not producing it during that period.

The 2018 COLA of 2 percent reflected a return to more typical inflation levels. Prices for food, energy, and other goods had risen enough between July and September 2017 that the average CPI-W showed a 2 percent increase over the prior year's baseline. This triggered the automatic adjustment for the first time in three years.

What you would have received if you were new to SSDI in 2018

If you began receiving SSDI in 2018, your initial benefit amount was calculated using the Primary Insurance Amount (PIA) formula, which is separate from the COLA. Your PIA is based on your lifetime earnings record and the age at which you became disabled. The 2018 COLA did not change how your initial benefit was calculated — it only increased the payments of people already receiving benefits in December 2017.

New beneficiaries in 2018 started at whatever amount Social Security calculated for them based on their earnings history. They then received the same 2 percent increase as existing beneficiaries starting in January 2019, when the next COLA (if any) would be announced.

How to find your 2018 benefit amount

Your Social Security Statement, available through your my Social Security account online, shows your payment history month by month. You can log in at ssa.gov, navigate to "My Social Security," and view your earnings record and benefit payment history. This record shows exactly what you received in December 2017 and what you received starting in January 2018, making it straightforward to confirm the 2 percent increase was applied.

If you did not receive a notice in December 2017 or January 2018 about the COLA, you can call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) and ask them to mail you a benefit verification letter. This letter states your current monthly benefit amount and can be useful for housing, loan, or other applications that require proof of income.

Frequently Asked Questions

Did the 2018 COLA affect Supplemental Security Income (SSI)?

Yes. SSI recipients also received the 2 percent COLA increase in January 2018. However, SSI has a federal benefit rate (the maximum monthly payment), and that rate increased by 2 percent as well. Some SSI recipients also receive SSDI, and both payments increased.

What if I was in a work incentive program when the 2018 COLA happened?

The COLA increase applied to your benefit regardless of work incentive status. If you were using a program like Impairment Related Work Expenses (IRWE) or Plan to Achieve Self-Support (PASS), your base benefit still increased by 2 percent in January 2018. These programs reduce your countable income for benefit purposes, but they do not prevent the COLA from being applied.

Can I get back pay if I missed the 2018 COLA increase?

If you were receiving SSDI in December 2017, the increase was applied automatically in January 2018 — there is no back pay to claim. If you believe you did not receive the increase, contact Social Security to verify your payment history. Errors are rare, but Social Security can investigate if your records show a discrepancy.

How does the 2018 COLA compare to other years?

The 2 percent increase in 2018 was modest compared to some years. For example, the 2008 COLA was 5.8 percent, and the 2011 COLA was 3.6 percent. However, 2018's 2 percent was higher than the zero percent increases in 2016 and 2017, and it reflected the actual inflation measured by the Consumer Price Index during that period.