Social Security Disability Recipients To Receive 8.7% Increase
You’re paying more at the pump. Prices have gone up at the grocery store. You can’t eat out anymore because restaurants are charging more. Everywhere you go, it’s outrageous.
Your dollar doesn’t go that far anymore. The good news is that if you’re a Social Security Disability recipient, you’ll see a nice increase in your monthly checks soon. The cost of living adjustment for 2022 will be 8.7%, so you’ll see this increase in your benefit starting January 1. The increase applies to all beneficiaries, including retirees, survivors, those who are disabled, and anyone else who receives Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).
This is a huge increase, but a necessary one. This is the biggest increase since 1981, when the COLA reached 11.2%. The year before, it was a whopping 14.3%.
With consumers paying much more than usual for food and gas, a huge COLA increase was absolutely necessary. However, they are not required. Since 1975, there have been three years in which there were no COLA increases: 2009, 2010, and 2015. The COLA is based on changes in consumer prices year to year and is applied to Social Security benefit amounts.
How Social Security Disability Recipients Are Affected
Social Security Disability benefits are paid out of payroll tax revenue that flows into Social Security’s trust funds. Benefit amounts and eligibility are determined by a worker’s earnings record.
Currently, the average monthly SSDI benefit for a disabled worker is $1,364. The 2023 COLA will increase this amount by $119, to $1,483.
There are also 1.25 million family members who receive Social Security Disability benefits based on the earnings record of a disabled spouse, former spouse, or parent. The average benefit is currently $2,407 a month. In January, this will increase to $2,616.
The earnings cap for Social Security Disability recipients is also adjusted annually. The Social security Administration places a cap on “substantial gainful activity” (SGA), which refers to how much beneficiaries can earn without seeing any penalties.
The cap is adjusted annually based on the National Average Wage Index, which measures trends in U.S. wages. In 2023, SSDI recipients will be able to earn up to $1,470 a month from work without risking their benefits. This is up from $1,350 in 2022. The cap is higher for those who are blind. For 2022, they will be able to earn up to $2,460 per month, which is a $200 increase from 2022.
Learn More About Social Security Disability Benefits
Inflation is a factor in government benefits such as Social Security Disability benefits. With the prices of everything skyrocketing, it’s good to know that there will be some relief when benefit payments go up next year.
Make sure you get everything you deserve. The White Plains Social Security Disability lawyer from The Law Office of Michael Lawrence Varon can help you get the most when it comes to your benefit payments. Schedule a free initial consultation by calling (914) 228-1770 or filling out the online form.