Social Security Disability Insurance (SSDI) provides much needed financial support to qualifying people in Northwest Arkansas who can no longer work due to a disabling medical condition. SSDI benefits are calculated based on an applicant’s average indexed monthly earnings (AIME). Each year, SSDI benefits will be adjusted to account for inflation.
Recently, the Social Security Administration (SSA) announced that Social Security benefits, including SSDI benefits, “will increase 8.7 percent in 2023”—the highest jump in more than four decades. In this article, our Rogers Social Security disability attorney explains the most important things that beneficiaries need to know about the SSDI cost-of-living adjustment (COLA) increase.
SSDI Benefits are Adjusted Each Year to Account for Cost of Living
Social Security benefits—including Social Security disability (SSD) benefits are adjusted on an annual basis to account for changes in the cost-of-living. As can be seen based on historical cost-of-living adjustments, Social Security benefits generally increase each year because of inflation. However, there are some exceptions. The most recent example is 2015—when there was no recorded increase in the cost-of-living and thus there was no adjustment to benefits.
Unusually High Inflation Makes the 2023 COLA Increase Especially Significant
Inflation is running unusually high, both in the United States and around the world. As reported by CBS News, the United States is currently experiencing its highest rate of inflation in more than 40 years. The 8.7 percent COLA increase that will be applied to SSDI benefits in January of 2023 is the highest annual adjustment since 1981. To put this number into perspective, the SSA reports that the average beneficiary of Social Security disability benefits will receive an increase of approximately $140 per month in 2023. Your specific COLA increase will depend on your monthly benefits. It is an 8.7 percent monthly increase. If you receive $1,500 per month in SSDI benefits in Rogers for 2022, your 2023 monthly rate would increase by 8.7 percent, or $130.50.
You Do Not Need to Take Action to Get Your SSDI Cost-of-Living-Adjustment
It is important to emphasize that you do not need to apply for COLA benefits. Your SSDI benefits should be automatically adjusted in January of 2023 to account for the increase in the cost of living. You should receive an 8.7 percent increase in your previous benefits. If you believe there is an error with your SSDI benefits, do not hesitate to contact a professional for legal guidance.
Contact Our Rogers, AR Social Security Disability Lawyer for a Free Consultation
At Gallo Cazort & Co. Law Firm, our Rogers Social Security disability attorneys are committed to providing top quality legal guidance and support to people and families in need. Contact us today to set up your free initial appointment with a lawyer. From our Rogers office, we provide Social Security disability representation in Benton County and throughout all of Northwest Arkansas.