What is the SSDI Increase For 2023: Answers, Resources & Assistance

by April L. Roberts | Mar 23, 2023

If you are one of approximately 9 million working-age Americans receiving Social Security Disability benefits, your social security disability insurance SSDI benefit amounts can increase each year. The federal government calculates increases in the cost of living to determine whether Social Security Administration SSA benefits are keeping up with inflation.

Although SSA benefits do not necessarily increase every year, the increases apply to all those receiving SSDI benefits at the time the increase is announced. Here we provide answers, resources, and assistance to explain the 2023 SSDI increase and how it impacts your benefits.

What Is the Cost Of Living Adjustment COLA?

The cost of living adjustment COLA is an annual increase beginning the second calendar year after retirement. It ensures social security beneficiaries can cope with the pace of inflation. If the SSA determines COLA is required, eligible retirees, as well as beneficiaries and survivors, receive COLA on their May 1st retirement checks. However, COLA also increases monthly benefits for SSDI and SSI beneficiaries. This increase comes into effect in January of the year COLA is applied.

How is COLA determined?

COLA is based on changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The Bureau of Labor Statistics calculates CPI-W each month. They then use those calculations and apply the CPI-W from the third quarter of the preceding year to the third quarter of the current year to determine COLA.

The formula that determines each COLA is based on whether the average CPI-W for the third quarter is higher than the base. For example, the COLA effective for December 2022 was based on the 2022 average of 291.901 and the 2021 base of 268.421. Rounded to the nearest tenth percent, the calculation is (291.901 – 268.421)/268.421 x 100.

What is the January 2023 Increase for SSDI?

Based on the calculation above, SSDI benefits will increase by 8.7 percent in 2023. This is the highest increase in 40 years. Starting in January 2023, the average increase for people with disabilities receiving SSDI benefits will be about $119 more per month, increasing from $1,364 to $1,483. For those with a spouse and children, the average increase will rise from $2,407 a month to $2,616.

What is the highest amount I can receive for the SSDI 2023 increase?

The maximum monthly benefits a disabled worker can receive for 2023 is $3627.

It is important to remember your SSDI is contingent on your inability to work. Therefore, you also have to keep up to date on changes to the income cap for “substantial gainful activity” (SGA) and working while receiving benefits. The SGA cap is based on the National Average Wage Index. For 2023, the maximum earnings are as follows:

Non-Blind increased from $1,350/mo. to $1,470/mo.
Blind increased from $2,260/mo. to $2,460/mo.
Trial Work Period (TWP) increased from $ 970/mo. to $1,050/mo.

What is the lowest amount I can receive for the SSDI 2023 increase?

There is no “minimum amount” for SSDI benefits.

Is the SSDI COLA Increase Automatically Applied to My SSDI Benefit Payments?

Yes. If there is a COLA, there is no need to reapply for SSDI benefits or to contact the SSA to ensure you receive your increase. If you currently receive SSDI benefits, you will automatically receive the increase starting in January for the year the COLA applies.

How is my percentage for the SSDI increase determined?

The SSA determines your monthly payments based on your lifetime average earnings prior to your disability and the deductions taken from your wages for Social Security or FICA. They calculate your average indexed monthly earnings (AIME) to determine your primary insurance amount (PIA). This is the same number they use when applying your COLA increase.

Does COLA Apply to SSI?

Yes. COLA applies to Social Security benefits, SSDI and Supplemental Security Income (SSI). If you receive SSI payments, your SSI benefits will increase by 8.7 percent in 2023. That means individuals will see an average social security income increase from $ 841 per month to $914 and couples will increase from $1,261 per month to $1,371.

How do I Find Out My New SSDI Benefit Amount?

Your COLA notice is sent via mail and also posted to the Message Center of your Social Security account in December.

Does Everyone Get the Cost Of Living Adjustment for SSDI Benefits Every Year?

Eligibility for Social Security COLA applies to all SSDI beneficiaries receiving SSDI benefits at the time the SSA announces the COLA. The 2023 announcement was made on October 23, 2022.

What Resources Are Available to Learn More About the 2023 COLA and Increases?

There are several resources available to learn more about the 2023 COLA and increases, including:

What Assistance Is Available for SSDI Applications and Denials?

If you are applying for SSDI, or were denied your benefits, finding a disability advocate can help. They provide expertise in Social Security claims submissions as well as the appeal process. The SSDI application and evaluation process is very complex, and only 34% of cases are approved without assistance. An advocate considers all aspects of your case and helps you establish credibility. They prepare the medical evidence and information required to receive approval with your initial application.

Taking the proper steps to ensure approval is very detailed. It requires a careful explanation of your disability and medical evidence to support your explanation which must be submitted at the beginning of your application. Once the SSA receives your application, it is very common for them to send out follow-up questionnaires and forms to be completed by yourself, witnesses and those involved in your care.

With the assistance of a disability advocate, you can ensure the questions are answered in clear, consistent language to avoid discrepancies and ensure your case is presented with all relevant facts to demonstrate you are unable to work. Advocates streamline the process using questionnaires at the initial application stage so the SSA receives all the information they need upfront. This reduces delays while increasing the chances your application is approved.

Before applying for social security disability benefits, call the disability advocates at Princeton Disability. We will make sure you avoid delays, receive approval and get the benefits you deserve. Reach out to us today.