What Is The COLA for SSDI for 2023?

Most years, the Social Security Administration (SSA) adjusts the amount of benefits distributed to individuals who receive Social Security Disability (SSD) benefits. This includes the benefits associated with Social Security Disability Insurance (SSD) and Supplement Security Income (SSI).

The SSA uses the term Cost of Living Adjustment (COLA) when discussing this increase in benefits. What is the COLA for SSDI for 2023? The SSA increased SSDI benefits by 8.7% through COLA in 2023.

2023 COLA Dollar Value Increase

The average payment for SSDI in 2021 was $1,358. An 8.7% increase would raise this amount to  $1,476 every month. 

However, not everyone receives the average monthly payment. You can calculate the specific increase for your SSDI benefits with this formula:

Your 2022 monthly payment x 8.7% = Monthly increase

Round up the results of the above equation to get a dollar value for your COLA increase on a monthly basis. You can then add this amount to your 2022 monthly payment to complete the calculation. You may also speak with an SSDI lawyer to discuss the changes with a professional.

For a legal consultation with a lawyer serving North Carolina and South Carolina, call 828.286.3866

How the SSA Determines COLA Increases

COLA increases vary from year to year. For example, in 2021 there was only an increase of 1.3% through the COLA system. The SSA bases COLA changes on fluctuations in the Consumer Price Index (CPI-W). Generally, the agency looks at statistics from the previous year’s third quarter into the current year’s third quarter.

The information in the CPI-W comes from the Bureau of Labor Statistics (BLS). This Bureau operates as part of the Department of Labor.

Inflation rates have remained high over the past several years. Many experts attribute spiking inflation to the continued effects of the coronavirus on the economy. Rising inflation increases the costs of groceries and other items.

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COLA and Retirement Benefits in 2023

The COLA impacts more than just SSDI. Individuals who receive retirement benefits through the Social Security Administration will also see their monthly payments increase. The SSA uses the same COLA (8.7%) for individuals receiving retirement benefits.

Retired workers do not all receive the same benefits every month. Individuals who reach their full retirement age in 2023 could receive $56,520 throughout the year. 

Benefits and Changes Associated with Medicare in 2023

The retirement benefits you receive should increase in 2023. However, this does not mean you should expect to see larger payments reaching your bank account.

Medicare premiums also rose in 2023. Therefore, your insurance check may actually become smaller if you have your premiums automatically deducted. According to the Centers for Medicare and Medicaid Services (CMS), the following premiums have all increased:

• Part A premiums increased to $506
• Part B premiums increased to $164.90
• Part C premiums increased to $17.60
• Part D premiums increased to $32.74

We understand that not everyone has the same Medicare program. The coverage you selected will determine the amount of money taken from your benefits to cover the program.

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When did COLA Go into Effect for 2023?

The SSA began applying COLA changes to SSDI and other benefits in January 2023. Therefore, you may have already received several checks with the increased COLA factored into your payments.

Note that the SSA does not send out benefit payments on the same day of the month for everyone. You may receive your benefits:

• On the second Wednesday of every month if you were born on the 1st-10th
• On the third Wednesday of every month if you were born on the 11th-20th
• On the fourth Wednesday of every month if you were born on the 21st-31st

COLA changes should not impact the date that you receive your SSDI benefits. They should continue to arrive as normal despite any adjustments.

Learn More About the COLA for SSDI in 2023

What is the COLA for SSDI for 2023? The SSA issued an 8.7% COLA for 2023 to address concerns regarding rising inflation. You can learn more about how this increase impacts you with our team at Farmer & Morris Law, PLLC.

You can learn more about SSDI benefits, COLA increases, and more with our team at Farmer & Morris Law, PLLC. Complete our online contact form to get started.

Call or text 828.286.3866 or complete a Case Evaluation form