Principal Attorney
Inflation and rising costs can erode the financial benefits of monthly payments from Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI). For this reason, the Social Security Administration makes annual cost-of-living adjustments to disability benefits in order to mitigate the effects of inflation on the purchasing power of SSD benefits.
What Is the Cost-of-Living Adjustment for SSDI and SSI?
By law, the Social Security Administration must determine an annual cost-of-living adjustment (COLA) for benefits, including disability and retirement benefits. The SSA’s annual COLA also applies to many other government financial benefits, such as VA disability benefits. The SSA bases the annual COLA on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year through the third quarter of the current year.
The 2026 COLA
The Social Security Administration recently announced that disability benefits will receive a 2.8 percent cost-of-living adjustment for 2026. Thus, recipients of SSDI and SSI benefits will see a 2.8 percent increase in their monthly benefit payments in 2026.
How The 2026 COLA Will Affect California Beneficiaries
The 2026 COLA applies to both Social Security Disability Insurance and Supplemental Security Income payments. For example, SSI recipients receiving the full monthly benefit will see an increase from $967 per month to $994 per month for individuals, and $1,450 per month to $1,491 per month for couples. The average SSDI payment will increase from $1,586 per month to $1,630 per month.
The 2026 COLA may have different effects on residents in various regions of California. For example, the COLA may not keep pace with increases in living costs in certain regions, particularly in metro areas such as San Francisco, Los Angeles, and San Diego.
Although the annual COLA can increase disability benefits, those increases may also affect recipients’ eligibility for state benefits.
Tips for Beneficiaries: Making the Most of Your COLA Increase
If you’re a beneficiary, you can seek to get the most out of the 2.8 percent increase in your monthly benefits by:
- Reviewing your monthly budget and making adjustments as needed to ensure that your increased benefit payment and other income will cover any increases in living expenses, including rent, utilities, food, and healthcare
- Reporting changes in income (if you’re an SSI recipient) promptly to avoid potential overpayments caused by the COLA increase
- Consulting a disability benefits attorney to ensure that the COLA increase does not affect your eligibility for other benefits, such as Medicaid eligibility
- Keeping detailed financial records in case you experience additional future changes in your benefits, or if you need to appeal decisions on your benefits
When Do COLA Changes Take Effect?
The 2026 COLA increase will take effect at the new year, increasing Social Security disability benefits starting with the monthly benefits for January 2026. The Social Security Administration typically mails official notices in December to SSD beneficiaries, advising them of the annual COLA and the new monthly benefit they can expect to receive in the coming year. Beneficiaries can also check their online account on the Social Security Administration’s website for updates.
Beneficiaries should review their January 2026 benefit statement to ensure they receive the 2.8 percent increase in benefits. Any beneficiary who receives an incorrect benefit amount should contact the Social Security Administration to address any discrepancies in payments. They can also contact a Social Security disability attorney if they have trouble correcting their monthly benefits.
Contact an SSD Lawyer Today
The Social Security Administration makes annual adjustments to disability benefits to ensure that recipients’ monthly payments keep up with inflation and rising living costs. Contact Disability Advocates Group today for a free, no-obligation consultation with a Social Security disability benefits attorney for help getting the most out of this adjustment.
