SSDI payments rose 5.9% in 2022 due to a cost of living adjustment

Yes, Social Security Disability Insurance (SSDI) benefits increased on January 1, 2022. The increase was 5.9%, which was the cost of living adjustment (COLA) for that year. This means someone who received $1,000 per month in December 2021 would receive $1,059 per month starting in January 2022.

The 5.9% increase was notably larger than the adjustments of previous years. From 2017 to 2021, annual increases had ranged from 0% to 1.3%. The 2022 jump reflected higher inflation in the economy during 2021, which is what triggers a larger COLA.

If you were receiving SSDI in January 2022, the increase was automatic—you did not need to do anything to receive it. Social Security mailed notices to beneficiaries in December 2021 showing the new payment amount.

Key Takeaways

  • SSDI payments increased 5.9% in January 2022, the largest adjustment in nearly a decade.
  • The increase was automatic for all SSDI beneficiaries; no action was required to receive it.
  • COLA adjustments happen once per year and are based on inflation data from the previous year.
  • The amount of your increase depended on what you were receiving in December 2021—higher payments meant larger dollar increases.

How the 2022 COLA was calculated

Social Security calculates the annual COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index tracks the cost of everyday goods and services throughout the year. In September, Social Security announces what the next year's COLA will be based on inflation data from July, August, and September.

For 2022, inflation had risen significantly during 2021 compared to 2020, which led to the 5.9% adjustment. This was the largest COLA since 1982. The announcement came in October 2021, giving beneficiaries two months' notice before the increase took effect on January 1.

It is important to understand that you do not receive the COLA as a separate payment. Instead, your regular monthly SSDI check straightforward becomes larger. If you have your payment deposited directly to a bank account, the new amount appears automatically in January.

Who received the 2022 increase

All SSDI beneficiaries received the 5.9% increase in January 2022, with one exception: beneficiaries who were also receiving workers' compensation or public disability benefits from a state or local government. These individuals may have had their SSDI reduced to stay within federal limits, which can affect how much of the COLA they actually keep.

Family members receiving benefits on your SSDI record—such as a spouse or child—also received the same 5.9% increase to their individual payments. If you were the primary beneficiary and your family members were receiving benefits based on your record, each of their payments went up by 5.9% as well.

If you began receiving SSDI after January 1, 2022, your first payment was already calculated at the new rate. You did not receive a separate adjustment notice because the increase had already taken effect.

The difference between 2022 and other recent years

The 2022 COLA of 5.9% stood out sharply from the years when ready before it. In 2021, the COLA was 1.3%. In 2020, it was 1.6%. In 2019, it was 2.8%. Going back further, 2017 and 2018 each had a 2% adjustment, and 2016 had no increase at all.

The reason for the larger 2022 increase was inflation. When prices for food, housing, fuel, and other necessities rise faster than usual, the COLA rises to help beneficiaries keep up with those costs. The inflation that occurred in 2021 was higher than what had been typical in the years before the pandemic, which is why the 2022 adjustment was notably larger.

It is worth noting that even though 2022 had a significant increase, it did not mean that SSDI payments had caught up to inflation over the long term. Beneficiaries and policy experts have debated whether the COLA formula accurately reflects the actual costs that disabled people face, particularly for healthcare and housing.

What the 2022 increase meant for your benefits

The dollar amount of your increase depended on what you were receiving in December 2021. Someone receiving $800 per month would have seen an increase of about $47. Someone receiving $1,200 per month would have seen an increase of about $71. The higher your payment, the larger the dollar increase.

This increase applied to your ongoing monthly payments. It did not affect any back pay you might have been owed from a prior appeal or a delayed start date. Back pay is calculated based on the payment rates that were in effect when you first became may have access to to benefits.

If you were working and earning income while receiving SSDI, the increase did not change how your work earnings were counted against your benefits. The rules about how much you can earn without losing benefits remained the same.

Frequently Asked Questions

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

No. The increase was automatic for all SSDI beneficiaries. Social Security applied it to your account on January 1, 2022, and you received the new amount in your next payment. You did not need to contact Social Security or submit any paperwork.

What if I didn't see the increase in my January 2022 payment?

Contact Social Security to report the issue. Call 1-800-772-1213 or visit your local Social Security office. Have your Social Security number and recent payment statements ready. If you receive workers' compensation or public disability benefits, your SSDI may have been reduced to stay within federal limits, which could affect how much of the COLA you kept.

Does the COLA increase happen every year?

Yes, but the amount varies. Social Security calculates a new COLA each year based on inflation. Some years the increase is small (1% or less), and some years it is larger (like the 5.9% in 2022). In rare years, there has been no increase at all.

Will my SSDI go up again in 2023 and beyond?

Yes, there will be a COLA adjustment each January going forward, though the percentage will depend on inflation during the previous year. Social Security announces the new COLA in October of each year, so you will know the amount before it takes effect in January.