What the 2022 COLA increase was

In October 2021, Social Security announced that SSDI payments would increase by 5.9% starting in January 2022. This was the largest cost-of-living adjustment (COLA) in nearly four decades. If you were receiving SSDI in January 2022, your monthly payment went up by this percentage automatically — you did not have to do anything to receive it.

The 5.9% increase applied to your full benefit amount, whatever that amount was. Someone receiving $1,000 per month would have seen their payment rise to $1,059. Someone receiving $1,500 would have received $1,588.50. The exact dollar increase depended on your individual benefit calculation, which Social Security had already determined when you were first approved for SSDI.

This COLA affected not only SSDI recipients but also people on Supplemental Security Income (SSI), retired workers on Social Security, and survivors receiving benefits on a worker's record. The adjustment was the same across all these programs.

Key Takeaways

  • The 2022 COLA increase was 5.9%, the largest adjustment since 1983, and took effect on January 1, 2022.
  • The increase was automatic — Social Security applied it to all SSDI payments without requiring you to request it or submit any paperwork.
  • Your new payment amount was based on your existing benefit, so a higher base payment meant a larger dollar increase.
  • Social Security mailed a notice in December 2021 showing your new payment amount, though some recipients received it in early January.

Why the 2022 increase was larger than usual

COLA adjustments are tied to inflation, measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). When inflation rises, the COLA rises with it. In 2022, inflation had climbed significantly from the previous year, driven by supply chain disruptions, increased demand for goods and services, and other economic factors.

The 5.9% adjustment reflected the inflation that had occurred between the third quarter of 2020 and the third quarter of 2021. This was substantially higher than the COLA increases of the previous decade, when adjustments had ranged from 0% to 2.8%. The last time a COLA exceeded 5% was in 1982, when it reached 7.4%.

It is important to understand that COLA is not a raise or a benefit increase decided by Congress or Social Security. It is a mathematical adjustment tied directly to inflation data. When inflation is low, COLA is low or zero. When inflation is high, COLA is high.

How to verify your 2022 payment amount

Social Security sent a notice called the "Social Security Benefit Statement" to most SSDI recipients in December 2021, showing the new payment amount effective January 2022. If you did not receive this notice, or if you want to confirm your current payment, you can check your account on the Social Security website at ssa.gov.

To view your payment information online, you need a my Social Security account. You can create one at ssa.gov/myaccount if you do not already have one. Once logged in, you can see your current monthly benefit amount, your payment history, and the date your next payment is scheduled.

If you receive SSDI through direct deposit, the increased amount appeared in your bank account on the same date your regular payment arrives each month. If you receive a paper check, the amount shown on your January 2022 check reflected the new COLA-adjusted rate.

What happened to the maximum family benefit in 2022

SSDI has a rule called the "family maximum benefit." If you are receiving SSDI as a worker and your family members (such as a spouse or children) are also receiving benefits on your record, there is a limit to the total amount Social Security will pay to your entire family each month. In 2022, this family maximum was adjusted along with individual benefits.

The family maximum is typically 150% to 180% of your primary insurance amount (the full benefit you receive as the worker). When COLA increased in 2022, the family maximum increased proportionally. This meant that families who were already at the maximum received no additional money — the total family payment stayed the same, but it was divided among more family members or the individual shares were recalculated.

If you are unsure whether your family is subject to the family maximum, you can ask Social Security directly by calling 1-800-772-1213 or visiting your local Social Security office.

How 2022 COLA affected other benefits and thresholds

The 2022 COLA adjustment also affected several other dollar amounts tied to Social Security. The earnings limit for people under full retirement age who continue to work changed. The substantial gainful activity (SGA) threshold — the income limit that determines whether you can work and still receive SSDI — also increased.

For 2022, the SGA threshold for non-blind individuals was $1,350 per month. For blind individuals, it was $3,580 per month. These thresholds are important if you are working or considering returning to work while on SSDI, because exceeding them can affect your benefits. The 2022 increase meant these thresholds were higher than they had been in 2021, giving recipients slightly more room to earn before their benefits were affected.

Additionally, the maximum SSI payment amount for 2022 increased from $794 to $841 for an individual and from $1,191 to $1,261 for a couple. These increases also reflected the 5.9% COLA.

What to do if you did not receive the increase

Most SSDI recipients received the 2022 COLA increase automatically. However, there were some situations where you might not have seen an increase in your payment amount. If you were also receiving SSI, Social Security might have reduced your SSI payment to account for the SSDI increase, leaving your total payment unchanged. If you were subject to the family maximum, your individual payment might have stayed the same or decreased if other family members' payments increased.

If you believe you should have received the COLA increase and did not, contact Social Security at 1-800-772-1213. You can also visit your local Social Security office in person. Have your Social Security number and recent payment statements ready when you call or visit. Social Security can review your account and explain why your payment amount is what it is.

Frequently Asked Questions

Did I have to do anything to get the 2022 COLA increase?

No. The increase was automatic. Social Security applied the 5.9% adjustment to all SSDI payments on January 1, 2022, without requiring you to submit any forms or contact them. You should have seen the new amount in your January payment.

What if I was not receiving SSDI for the full year in 2022?

If you were approved for SSDI after January 1, 2022, your initial benefit amount was calculated based on your earnings record at the time of approval. You would not have received the 5.9% increase retroactively. However, you would receive future COLA adjustments starting in January 2023 and beyond, calculated from your initial benefit amount.

Does the COLA increase affect my Medicare premiums?

SSDI recipients are automatically enrolled in Medicare after 24 months of receiving benefits. In 2022, the standard Medicare Part B premium increased, but Social Security has a "hold harmless" rule that protects most beneficiaries from premium increases that would reduce their net payment. If your COLA increase was larger than your premium increase, you kept the difference. If your premium increase was larger, Social Security held your payment harmless and you did not see a reduction.

Will there be another COLA increase in 2023?

Yes. Social Security announces the next year's COLA in October of each year, based on inflation data through September. The 2023 COLA was 8.7%, which was even larger than 2022. Future COLA adjustments will continue each January based on inflation rates.