What the 2020 COLA increase was

In 2020, Social Security increased all SSDI payments by 1.6 percent. This was the Cost of Living Adjustment (COLA) for that year, meant to help benefits keep pace with inflation. If you received SSDI in December 2019, your January 2020 payment reflected this increase automatically — you did not have to do anything to receive it.

The 1.6 percent increase was smaller than some years and larger than others. The exact percentage changes each year based on how much prices rose for food, housing, medical care, and other costs that matter to people on fixed incomes. Social Security calculates it using the Consumer Price Index, a government measure of inflation published each fall.

For someone receiving $1,200 per month in December 2019, the 1.6 percent increase meant an extra $19.20 per month starting in January 2020. For someone receiving $800 per month, it meant about $12.80 more. The dollar amount varied depending on what you were already receiving.

Key Takeaways

  • The 2020 COLA was 1.6 percent, applied to all SSDI payments in January 2020 with no action required from you.
  • Your new payment amount depended on what you received in December 2019 — Social Security multiplied that by 1.016.
  • COLA increases are based on inflation measured by the Consumer Price Index and are set by law, not by Social Security's choice.
  • If you were receiving SSDI as a child on a parent's record or as a spouse, you received the same 1.6 percent increase to your payment.

How the 2020 increase affected your monthly payment

Social Security sent notices in December 2019 telling you what your new payment would be starting in January. The notice showed your old monthly amount and your new amount side by side. If you did not receive a notice, you could call Social Security at 1-800-772-1213 to ask what your new payment was.

The increase applied to your entire payment, not just part of it. If you were receiving SSDI as a worker on your own record, as a child, or as a spouse, the full amount went up by 1.6 percent. Supplemental Security Income (SSI), a different program, also received a 1.6 percent increase that year, though the two programs are separate and have different rules.

Some people on SSDI also received Medicare or Medicaid. The COLA increase did not change your health coverage — it only changed the cash payment you received each month. Your Medicare premiums, copays, and coverage stayed the same unless Social Security notified you of a separate change.

Why 2020's increase was lower than some years

The 1.6 percent increase in 2020 was modest compared to some recent years. In 2019, the COLA had been 2.8 percent. In 2021, it jumped to 5.9 percent. The difference came down to how much inflation happened in the months Social Security used to calculate the adjustment.

Social Security looks at inflation data from July, August, and September of the year before the increase takes effect. For the 2020 COLA, they used data from summer and early fall 2019. During that period, prices were rising slowly — not as fast as they had in 2018 or would in 2021. That slower inflation meant a smaller COLA.

You cannot predict what next year's COLA will be. It depends entirely on what happens to prices in the months Social Security measures. Some years bring larger increases, some bring smaller ones, and in rare cases (like 2010 and 2011), there is no increase at all.

What happened if you were working while receiving SSDI

If you were working and receiving SSDI in 2020, the 1.6 percent increase still applied to your benefit amount. However, your actual payment might have been reduced or stopped depending on how much you earned. SSDI has a substantial gainful activity (SGA) limit — a monthly earnings threshold above which Social Security assumes you are working too much to be disabled.

In 2020, the SGA limit was $1,260 per month for non-blind workers and $3,350 for blind workers. If you earned more than these amounts, Social Security could suspend your benefits. The COLA increase did not change these limits — they are set separately and increase each year as well.

If you were in a trial work period or using work incentives like Impairment Related Work Expenses (IRWE), the COLA still applied to your base benefit amount. These programs let you test your ability to work without when ready losing all your benefits, and the 1.6 percent increase gave you a slightly larger safety net during that testing period.

How to find out what your 2020 payment should have been

If you kept the December 2019 notice Social Security sent you, you can see your old and new amounts printed on it. If you no longer have that notice, you can create a my Social Security account at ssa.gov to view your payment history and current benefit amount. The account shows you every payment you have received and when.

You can also call Social Security at 1-800-772-1213 and ask a representative to tell you what your payment was in January 2020. Have your Social Security number ready. Representatives can also explain any changes to your payment that happened after the COLA increase — for example, if you reported work income or if your medical condition changed.

If you believe your 2020 payment was wrong, you can file a request for reconsideration with Social Security. You have 60 days from the date on the notice to ask them to look at it again. After that, you can appeal to an administrative law judge, though this process takes several months.

COLA increases for family members on your record

If you were receiving SSDI and had family members also receiving benefits on your record — such as a spouse or children — they all received the same 1.6 percent increase in January 2020. Social Security applies the COLA to every person on the same benefit record at the same time.

However, there is a family maximum benefit. If your family's total benefits exceeded a certain amount (which varies by your primary insurance amount), Social Security reduced each family member's payment proportionally so the total did not exceed the cap. The 2020 COLA increase could have pushed your family over the maximum, which would have meant smaller individual payments to keep the family total within the limit.

If this happened to you, Social Security would have explained it in the notice you received in December 2019. The notice would show your new amount and note that it was reduced due to the family maximum. If you have questions about how the family maximum affected your payment, Social Security can break down the calculation for you.

Frequently Asked Questions

Did I have to do anything to get the 2020 COLA increase?

No. The increase was automatic. If you were receiving SSDI in December 2019, your January 2020 payment included the 1.6 percent increase without you taking any action. Social Security applied it to everyone's payment at the same time.

What if I started receiving SSDI after January 2020?

Your first payment would have already included the 2020 COLA. Social Security calculates new payments using the current benefit formula, which reflects the most recent COLA. You would not receive the 2020 increase twice — it was built into your starting amount.

Does the COLA increase affect Medicare premiums?

Not directly. Your Medicare Part B premium is set separately each year. However, Social Security has a "hold harmless" rule that protects most people: if your Medicare premium increase is larger than your COLA increase, Social Security does not reduce your benefit. In 2020, this rule protected many beneficiaries from premium increases.

Can I appeal if I think my 2020 payment was calculated wrong?

Yes. You have 60 days from the date on your December 2019 notice to request reconsideration. Call Social Security at 1-800-772-1213 or visit your local office with documentation of what you believe the error was. After reconsideration, you can appeal to an administrative law judge if you disagree with the decision.

Will future COLA increases be the same size as 2020?

No. The COLA changes each year based on inflation. The 2020 increase was 1.6 percent because inflation was low that year. In 2021, it was 5.9 percent because inflation rose. Future increases will depend on what happens to prices in the months Social Security measures.