Whether you are already on SSDI benefits or in the application process, you are likely watching to see how much could SSDI increase by in 2024. That’s where the American Disability Action Group can help. We will provide some excellent estimates and run you through a few scenarios along with a look back at the increase in 2023. Keep reading to learn more.
How is the Yearly SSDI Increase Determined?
Every year, SSDI can increase by a percentage and this percentage is known as the COLA. This percentage is set by the government and does fluctuate each year. Let’s dive into what the COLA is, what it stands for, and how it works.
What is the COLA?
When referring to SSDI, COLA is not a sweet drink, but rather an acronym that stands for cost of living adjustment. Essentially, this is a percentage increase that can happen once per year at the beginning of the year. It is based on inflation. This COLA can never be negative. In other words, if there is deflation, the COLA will just be set at zero.
The COLA is determined based on third-quarter numbers from a government-generated consumer price index. Because of this, we never know what the COLA will be for the next year until October. However, we can look at the current inflation data to get an estimate.
The COLA applies to more than just SSDI too. It also applies to normal retirement benefits as well as Supplemental Security Income or SSI. A relatively recent change in how veterans benefits are handled means that the COLA also affects VA benefits as well.
What is the COLA Estimated to be for 2024?
Like we said, the COLA will be unknown until the middle of October 2023. However, we can make some educated estimates based on the current inflation rate. This year, it’s much lower than last year, which is a good sign for the economy, but it will mean that you should all expect a lower increase for your SSDI payments.
Currently, inflation is trending below 3%, so you should expect it to be lower than that assuming no major changes in the economy in the coming months. There is even a possibility that inflation dips below 2%. Currently, the average SSDI payment is about $1,358. If we assume about a 2.5% increase, that would put the new average around $1,392 or an increase of about $34.
How Much Did SSDI Increase in 2023?
If you saw a big jump in your SSDI payments for 2023, you would not be alone as the COLA was the highest that it has been in over 40 years. The increase was 8.7% and if we work backward from the 2023 average payment of $1,358, that was an increase of about $73 per payment or about double what we are estimating for 2024.
Need Help Getting the SSDI Benefits You Deserve?
If you need legal help getting the SSDI benefits that you deserve, whether you have been denied or are already in the appeals process, the team of SSDI legal experts at American Disability Action Group is here to help. Reach out to us today for a case review.
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