Every fall, the Social Security Administration (SSA) announces a cost-of-living adjustment (COLA) for Social Security payments for the following year. COLA is designed to ensure that beneficiaries don’t lose their financial security due to inflation and the rapidly rising cost of consumer goods and services in the United States.
Recently, the SSA announced that the COLA increase for 2023 is 8.7% – the highest disability benefits increase in 40 years. That means that about 70 million Americans collecting Social Security benefits will see a significant increase in their monthly payments. So if you’re collecting disability benefits or plan to collect, here’s what you should know about next year’s COLA.
What to Expect from Your SSD Payments After COLA
The SSA will officially enact the COLA at the beginning of January, with an average increase of $140 to monthly checks. Beneficiaries are usually notified about their increase in benefits by mail starting in early December. However, the My Social Security online portal is the fastest way to access information regarding the increased benefit amount.
For more information from the SSA about COLA, click here. If you’re applying for or receiving benefits and need help, speak with the dedicated Social Security Disability lawyers at Daggett Shuler today.
How is COLA Calculated?
The yearly benefits increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The SSA calculates this by measuring the CPI-W change from the previous year’s third quarter to the current year’s third quarter.
You Can Depend on Daggett Shuler
As the cost of living continues to rise, many Americans face pressure to make ends meet. However, those collecting disability benefits can rest assured that their monthly payments will meet the increasing economic demands.
At Daggett Shuler, it’s our mission to help our neighbors of the Triad community and make a difference when they need it most. If you have become disabled and can no longer support yourself, you may qualify for financial assistance from the SSA. Our Social Security Disability lawyers will work hard to ensure that your voice is heard by the SSA and that you receive the benefits you need and deserve.
Contact us today by submitting a form below or calling our office at 336-724-1234 for a free consultation.