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The 8.7% COLA for Social Security recipients arrives in January

On Behalf of | Dec 14, 2022 | SSDI

In less than three weeks, people who receive Social Security benefits will see an 8.7% increase in their monthly payments, giving them a needed boost for rising prices stemming from inflation.

The list of those who benefit includes retirees and survivors as well as people who receive disability benefits – the millions of people who get Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).

Largest COLA increase since 1981

The Social Security Administration (SSA) made the announcement in mid-October, receiving some fanfare from the millions of disability benefits recipients who can no longer work due to serious health conditions.

The SSA’s annual Cost of Living Adjustment (COLA) of 8.7% signifies the largest increase since 1981. At that time, Social Security program recipients saw a boost of 11.2% in monthly benefits.

In October, disabled workers received average monthly payments of $1,364. But, come January, the average amount will climb to $1,483, representing an increase of $119.

Nearly 7.7 million disabled workers will benefit

The COLA will affect the 7.67 million disabled workers currently receiving SSDI benefits. This represents close to 12% of all Social Security beneficiaries. Others who will see that monthly payment increase include 93,000 spouses of disabled workers and 1.15 million children of disabled workers.

Also, the average combined benefit for a disabled worker with a spouse and children will climb to $2,616 per month from the previous $2,407.

Families welcome the news

The recent SSA decision brings some relief to families who rely on SSDI benefits. While inflation may have cooled in some areas, it remains quite present for the average consumer. And some of those average consumers receive SSDI benefits, hoping some day to return to work.