Yes, SSDI payments increased by 1.6% in January 2020

Social Security Disability Insurance (SSDI) payments went up by 1.6% in 2020. This increase happened automatically in January 2020 because of the Cost of Living Adjustment (COLA)—an annual raise that Social Security calculates based on inflation. If you were receiving SSDI in December 2019, your January 2020 payment was larger without you having to do anything to request it.

The 1.6% raise was smaller than some years. In 2019, for example, the COLA was 2.8%. The amount of the raise depends entirely on how much prices rose during the year that Social Security measures—it is not a choice Social Security makes, and it is not something Congress votes on.

This was the second consecutive year of modest increases. After the financial crisis of 2008 and 2009, when inflation was very low, COLA amounts stayed small for several years. By 2020, the economy had recovered somewhat, but inflation was still measured and steady rather than rapid.

Key Takeaways

  • SSDI payments increased by 1.6% in January 2020 as an automatic cost of living adjustment based on inflation data.
  • The increase applied to everyone on SSDI at that time without requiring any action or paperwork on your part.
  • Your actual dollar increase depended on your individual payment amount—someone receiving $1,000 per month gained roughly $16, while someone receiving $1,200 gained roughly $19.
  • Social Security announced the 1.6% figure in October 2019, giving people two months' notice before the increase took effect in January.
  • COLA changes every year based on the Consumer Price Index, so the percentage varies depending on how much inflation occurred that year.

How the 1.6% increase worked in real dollars

The actual dollar amount of your raise depended on how much you were receiving before January 2020. Someone getting $1,000 per month would have seen roughly a $16 increase. Someone getting $1,200 per month would have seen roughly a $19 increase. Someone receiving $800 per month would have gained approximately $13.

Social Security calculated each person's new amount separately based on their individual payment. The percentage was the same for everyone (1.6%), but the dollar amount varied because people receive different monthly payments based on their work history and the age at which they became disabled.

If you were not yet on SSDI in January 2020—if you were still waiting for a decision on your claim—this COLA did not affect you. Your first payment would be based on the rules in place when Social Security approved your claim. If your claim was approved in February 2020 or later, your initial payment would already reflect the 2020 COLA built in.

Why COLA changes from year to year

The COLA percentage is not set by Social Security or Congress. It is calculated automatically using the Consumer Price Index (CPI), which measures how much prices for everyday goods and services have risen. Social Security looks at the CPI for the third quarter of each year (July, August, and September) and compares it to the same months in the previous year.

In 2020, prices rose less than they had in 2019, so the COLA was smaller. In years when inflation is higher, the COLA is higher. In years when prices are stable or falling, the COLA can be very small or even zero—this happened in 2009 and 2010, when no increase occurred because the economy was contracting.

Social Security announces the COLA for the following year in October. So in October 2019, Social Security announced that the 2020 COLA would be 1.6%, and that increase took effect in January 2020. This advance notice gives people time to plan and understand what their new payment will be.

When you received your first increased payment

If you were on SSDI before January 2020, your first payment reflecting the 1.6% increase arrived in your bank account or by check in early January 2020. Most people receive SSDI by direct deposit, so the money appeared on the first business day of the month—usually January 3rd or 4th, depending on the day of the week.

If you received a paper check, it arrived in the mail during the first week of January. The amount shown on that check was 1.6% higher than your December 2019 payment. Your Social Security statement, which you could view online or receive by mail, would show both the old and new payment amounts for comparison.

You did not receive a separate notice about the increase unless you had requested one. Social Security assumes that people notice the change when their payment arrives. However, if you wanted confirmation of the new amount, you could call Social Security at 1-800-772-1213 or log into your my Social Security account online.

COLA and your other benefits

If you also received Supplemental Security Income (SSI)—a separate program for people with low income and limited resources—that payment increased by the same 1.6% in January 2020. COLA applies to both SSDI and SSI at the same time, even though they are different programs with different rules.

If you received benefits as a family member on someone else's Social Security record (such as a child receiving benefits because a parent became disabled, or a spouse receiving benefits), your payment also increased by 1.6% in January 2020. Family members' benefits are tied to the worker's benefit amount, so when the worker's benefit goes up, theirs does too.

What happened after 2020

The COLA changes every year based on inflation. In 2021, the COLA was 1.3%—even smaller than 2020. In 2022, it was 8.7%—the largest increase in decades because inflation spiked significantly. In 2023, it was 8.8%, continuing the higher trend.

Each January, if you were on SSDI, your payment adjusted automatically. You never had to request it or fill out a form. Social Security handles the calculation and deposits the new amount into your account. This automatic adjustment is one of the key protections built into SSDI—your benefit keeps pace with the cost of living without you having to take any action.

Frequently Asked Questions

Did I have to do anything to get the 1.6% increase in 2020?

No. The increase was automatic. If you were receiving SSDI in December 2019, the higher amount appeared in your January 2020 payment without any action on your part. Social Security applied it to all SSDI recipients at the same time.

What if I started SSDI after January 2020?

Your first payment would have been based on the payment rate in effect when Social Security approved your claim. If you were approved in February 2020 or later, your payment would already include the 2020 COLA built into the calculation.

Does COLA happen every year?

Yes, Social Security calculates a COLA every year based on inflation data. Some years the increase is larger, some years smaller. In rare cases when inflation is very low or negative, the COLA can be zero, meaning no increase that year.

Can I find out what my payment was before the 2020 increase?

Your Social Security statement shows your payment history. You can view this online at ssa.gov by creating a my Social Security account, or call Social Security at 1-800-772-1213 to ask about your payment from December 2019 compared to January 2020.

How do I know what next year's COLA will be?

Social Security announces the COLA for the following year in October. You can find the announcement on ssa.gov, or call 1-800-772-1213 to ask. The announcement includes the percentage and usually an example of what the increase means in dollars.