Inflation is soaring through the roof, and the Social Security Administration (SSA) has approved a cost-of-living adjustment (COLA) to take place in 2023. This post will examine what the 2023 COLA increase means for Social Security Disability (SSD) and Supplemental Security Income (SSI) recipients. We’ll also explain how an SSD lawyer can help you understand your legal rights.
What is the Social Security COLA?
As mentioned above, COLA is an acronym for the cost of living adjustment. The origin of COLA goes as far back as the 1970s. The idea behind COLA is that as the cost of living increases through inflation, Social Security benefits will increase to match.
The intent is to allow Social Security, SSD, and SSI benefits to keep pace with inflation. This means even as the Consumer Price Index changes, Americans can still provide for themselves and their families.
Does COLA increase future Social Security benefits?
In simplest terms, yes. This is why there is such interest over Social Security’s COLA increase for 2023. How great the increase is will have a significant impact on the lives of many Americans, particularly those who require SSD and SSI disability.
The COLA increase for 2023 will be close to 9 percent. Tax rates aren’t expected to change, though of course it should be noted that maximum taxable income will be increasing.
It’s also essential to understand that Social Security COLA increases are compounded. This means upcoming adjustments in 2024 will come on top of the 2023 adjustments, while Social Security benefits don’t shrink. But annual adjustments can sometimes be small. The 9 percent increase in 2023 is significantly more substantial for example than the 1.3 percent annual COLA increase in 2020.
When will these effects be enacted?
The changes to COLA will first be seen in the latter part of December 2022. Technically, higher SSD payments will first appear in the coming year during January 2023. The new rates go into effect on the specific Wednesday in January 2023 that corresponds with each beneficiary’s birth date, as seen here.
How an SSD lawyer can help you
With an uptick in inflation, SSD benefits are increasingly vital to many Americans, especially those with difficulty getting employment due to disability. However, the approval rate for SSD has been declining. Denied claims can be appealed. With the COLA increase for 2023, appealing a denied claim is more urgent than ever. This is especially true when one considers the lengthy wait times for appeals, which can take up to the better part of a year.
If you’re interested in legal support from an SSD lawyer, you can take a free evaluation right now. You should aslo feel free to contact us with any questions you might have. We can help you find a Social Security disability lawyer in your area, and get you on the way to claiming your Social Security disability benefits.