As the goods and services you need go up in price, will your Social Security Disability benefits increase as well? Our Daytona Beach Social Security attorney answers this question and more.
If you rely on SSDI (Social Security Disability Insurance) benefits to support yourself, it can be challenging to face increasing prices. Your benefits payments come at a fixed rate, so the inflation rate can have a significant impact on your monthly budget. You may hear a lot of discussion about potential increases to your benefit payments, but the best place to go for accurate information is to the Social Security Administration or your trusted Daytona Beach Social Security attorney.
Do Social Security Payments Change with Inflation?
The quickest way to answer this question is yes; your Social Security benefits are increased to keep up with inflation. This increase is officially known as the ‘Cost-of-Living Adjustment (COLA),’ and it is calculated by the Social Security Administration (SSA).
Each year, the SSA determines whether to increase benefit payments for the upcoming year, and factors in the inflation rate when making that decision.
When Did the Social Security COLA Start?
When Social Security Disability benefits first began, they did not increase automatically with higher living costs. Benefits would only increase if congress passed laws that included larger payments. This COLA started in the 1970s when the cost of living rose dramatically in the United States. Many individuals who were employed and working could keep up with the inflated prices by seeking higher wages, but those on fixed incomes struggled to make ends meet.
This resulted in a change to the Social Security program that went into effect in 1975.
What was the Social Security Disability Cost-of-Living Increase for 2022?
For 2022, a 5.9% COLA increased the benefit payments for those receiving Social Security and Supplemental Security Income. The increased payments began on December 30, 2021.
Notably, in 2018 the COLA resulted in a 2.8% increase to benefit payments. This increase was the highest increase since 2011. The highest adjustment in history was made in 1980, when inflation reached over 13%, and the COLA was 14.5%.
When is the Social Security Cost-of-Living Adjustment Announced?
In the years when there is a COLA to Social Security Disability benefits, the Social Security Administration usually announces the increase in October for changes that will apply to the following year’s payments.
When will the 2023 Cost-of-Living Adjustment be Announced?
The COLA for the year 2023 has not yet been announced by the Social Security Administration. You may see in the news that there are groups that make estimates based on economic indicators, but the final number will not be known until it is officially announced. As Daytona Beach Social Security attorneys, we will continue to monitor and keep our clients informed of any changes as they are confirmed.
Do You Need A Daytona Beach Social Security Attorney?
The attorneys at Culbertson Law Group are prepared to represent you. Our years of experience and in-depth knowledge of Social Security Disability gives our clients an edge. Contact us today to schedule your free consultation.