What the 2023 COLA meant for your SSDI payment
In October 2022, the Social Security Administration announced an 8.7 percent cost-of-living adjustment (COLA) for 2023 — the largest increase in four decades. If you received SSDI in 2023, your monthly payment went up by this percentage starting in January 2023. The exact dollar amount of your raise depended on what you were receiving in December 2022.
For example, if your December 2022 SSDI payment was $1,000 per month, your January 2023 payment became $1,087. The increase was automatic — you did not have to request it or contact Social Security. The new amount appeared in your bank account or on your payment card on your regular payment date.
This 8.7 percent jump was tied directly to inflation. The COLA is calculated each year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in the cost of goods and services. Because inflation was unusually high in 2022, the 2023 COLA was correspondingly large.
Key Takeaways
- The 2023 COLA increased SSDI payments by 8.7 percent across the board, with no action required on your part.
- Your new payment amount took effect in January 2023 and was based on your December 2022 benefit amount.
- The increase was tied to inflation measured by the Consumer Price Index and was the largest COLA since 1982.
- If you were receiving Supplemental Security Income (SSI) in addition to SSDI, you received a separate 8.7 percent increase to that payment as well.
How the 8.7 percent increase was calculated
Social Security calculates the COLA by comparing the average Consumer Price Index for the third quarter of the current year (July, August, September) to the average for the third quarter of the previous year. In 2022, this comparison showed an 8.7 percent rise in the cost of living.
The Social Security Administration then applies this percentage to every SSDI payment amount. Because SSDI payments vary widely — some recipients receive $600 per month, others $3,000 or more — the dollar amount of the increase also varies. A person receiving $800 per month received an increase of about $70, while someone receiving $2,000 per month received an increase of about $174.
The COLA is rounded to the nearest dime. This means your actual increase may have been slightly higher or lower than the exact 8.7 percent calculation, depending on how the rounding worked out for your specific payment amount.
When you saw the increase in your account
The 2023 COLA took effect on January 1, 2023. Social Security distributes SSDI payments on a schedule based on your birth date — most recipients receive payments on the second, third, or fourth Wednesday of each month. Your first payment reflecting the 8.7 percent increase arrived on your regular payment date in January 2023.
If you receive your payment by direct deposit to a bank account, the new amount was deposited automatically. If you receive a payment card (the Direct Express card), the funds were loaded on your regular payment date. If you receive a paper check, the check amount reflected the new total.
You should have received a notice from Social Security in December 2022 or early January 2023 explaining the COLA and showing your new payment amount. If you did not receive this notice, you can view your payment information by logging into your my Social Security account at ssa.gov.
Why 2023 had such a large increase
The 8.7 percent COLA in 2023 was unusually large because inflation in 2022 was unusually high. Prices for food, energy, housing, and transportation all rose sharply, which pushed the Consumer Price Index up significantly. This was the highest COLA since 1982, when inflation was also at historic levels.
In most years, the COLA is much smaller — often between 1 and 3 percent. Some years have had no COLA at all, when inflation was flat or negative. The 2023 increase was a direct response to real increases in the cost of living that SSDI recipients, like all Americans, were experiencing.
How the COLA affects your work incentives and benefits
If you are working while receiving SSDI, the COLA increase does not change your work incentive rules. You still have access to the same work incentives — such as the Student Earned Income Exclusion, Plan to Achieve Self-Support (PASS), or Impairment Related Work Expenses (IRWE) — that allow you to work and keep some or all of your benefits. The increase in your payment amount does not trigger a medical review or affect your continuing disability status.
If you also receive Supplemental Security Income (SSI), you received a separate 8.7 percent increase to your SSI payment as well. However, if your SSDI increase pushed your total income above the SSI income limit, your SSI payment may have been reduced or eliminated. Social Security handles this adjustment automatically and will notify you if it affects your SSI.
Comparing 2023 COLA to other recent years
| Year | COLA Percentage |
|---|---|
| 2023 | 8.7% |
| 2022 | 5.9% |
| 2021 | 1.3% |
| 2020 | 1.3% |
| 2019 | 2.8% |
The 2023 COLA of 8.7 percent stands out sharply against the previous five years. The 2022 COLA of 5.9 percent was itself the second-largest in that period, but 2023 was significantly higher. This reflects how rapidly inflation accelerated in 2022 compared to the relatively stable prices of 2019 through 2021.
What happens if you think your payment is wrong
If your January 2023 payment did not increase by approximately 8.7 percent, or if you believe the new amount is incorrect, contact Social Security directly. You can call 1-800-772-1213 (TTY 1-800-325-0778) Monday through Friday, 8 a.m. to 7 p.m. Eastern time. Have your Social Security number and your payment information from December 2022 and January 2023 ready when you call.
You can also visit your local Social Security office in person or create an account at ssa.gov to view your payment history and benefit details. If you find an error, Social Security can correct it and issue a back payment if you were underpaid, or adjust future payments if you were overpaid.
Frequently Asked Questions
Did I have to do anything to get the 2023 COLA increase?
No. The COLA is automatic. Social Security applied the 8.7 percent increase to all SSDI payments with no action required from you. You did not need to contact Social Security, submit a form, or request the increase.
What if I was in a work trial or using a work incentive in 2023?
The COLA increase applied to your SSDI payment regardless of whether you were working. Work incentives like PASS or IRWE do not prevent you from receiving the COLA. Your payment went up by 8.7 percent, and your work incentive rules remained the same.
Does the COLA increase count as income for SSI purposes?
If you receive both SSDI and SSI, your SSDI increase is counted as income for SSI. If the increase pushed your total income above the SSI limit, your SSI payment was reduced dollar-for-dollar above that limit. Social Security handles this automatically and will send you a notice if your SSI changed.
Will I get a 2024 COLA increase too?
Yes, but the amount will be different. The 2024 COLA was 3.2 percent, much smaller than 2023 because inflation slowed in 2023. Each year's COLA is calculated fresh based on that year's inflation data and is announced in October for the following January.
What if I was not receiving SSDI for the full year in 2023?
If your SSDI began partway through 2023, your first payment included the COLA automatically. You did not receive a retroactive increase for the months before your benefits started. The COLA applies only to payments you actually received.