Understanding the 2023 Cost of Living Adjustment
Every year, Social Security adjusts benefit payments to reflect inflation. In 2023, everyone receiving Social Security retirement, Social Security disability, and Supplemental Security income will see a 8.7% increase in their benefits. This means an increase of more than $140 per month:
Average monthly SSDI (2023): $1,483
Maximum monthly SSI (2023): $914
The cost-of-living adjustment (COLA) does not just impact an individual’s monthly benefit amount, but the maximum monthly benefit amount, and the eligibility criteria for Social Security disability benefits. The maximum monthly benefit for disability and retirement is increasing to $3,627 per month.
The updated eligibility criteria for Social Security disability means that people have a little more flexibility in how much they can work while still applying for benefits. The new substantial gainful activity threshold will be $1,470 per month (this is the amount you have to make less than to be eligible for Social Security disability benefits) and the trial work period threshold is increasing to $1,050 per month (this is how much you can earn from work while already receiving disability benefits).
For more information, read the Social Security Press release.