2023: Important Changes to Social Security Disability and COLA Social Security Disability, COLA and Other 2023 Updates
The Social Security Administration (SSA) finally provided recipients a much-needed cost-of-living adjustment (COLA) for Social Security and Supplemental Security Income (SSI) benefits in 2023. According to the announcement, Social Security beneficiaries would get an 8.7% increase in their monthly payments starting in January 2023. This is the largest COLA increase since 1982 when benefits were increased by 7.4%.
Keeping Up with Inflation
The COLA increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of the average change in prices for goods and services purchased by workers in urban areas. The increase in the CPI-W reflects the rising costs of goods and services, including housing, food and transportation.
The increase in Social Security Disability (SSD) benefits is welcome news for the millions of Americans who rely on these payments to cover their basic living expenses. For many retirees and disabled individuals, Social Security is their primary source of income, and the COLA increase will provide some much-needed relief from the high living costs. If you’re wondering whether you can apply, check out the eligibility requirements and other necessary documentation needed to start the process.
SSI Benefit Updates
SSI benefits are intended to help low-income individuals and families who are elderly, blind, or disabled and the increase in benefits will help alleviate some of the financial hardships faced by these vulnerable populations. The new SSI federal base amount is $914 per month for an individual and $1,371 monthly for a couple. However, most recipients get less than the federal base due to income or free room and board.
In addition to the increase in Social Security benefits, the SSA also announced that the maximum earnings subject to Social Security taxes would increase from $147,000 in 2022 to $160,200 in 2023. This means that high-income earners will pay more in Social Security taxes, which will help fund the program and ensure its long-term sustainability.
It's important to note that these changes may not apply to everyone who receives SSDI and SSI disability benefits. Some people may be subject to different rules or limits based on their specific circumstances. If you have questions about how these changes may affect you, it's a good idea to speak with a Social Security representative or your trusted legal professional to help you navigate through the system.
The difference between SSI and SSDI can be tricky. Both are directed by the SSA, but the laws that govern them are different. Learn more about the difference in our recent blog here.
Preserving Your Rights!
Black & Jones’ attorneys are ready to support you with your SSD or SSDI claims. Located in Rockford, Illinois, our team focuses on workers’ compensation, Social Security disability and personal injury. Call (815) 967-9000 or contact us for a free consultation and to see what benefits may be available to you!