Do You Get Cost-of-Living Increases (COLA) When You're on Disability?

In most years, disability recipients receive a small cost-of-living increase to their Social Security disability insurance (SSDI) or SSI disability benefits. The term the federal government uses for cost-of-living increases is "COLA," which stands for cost-of-living adjustment.

How Much Is the Social Security COLA for 2025?

The Purpose of Social Security's COLA

The purpose of the COLA is to make sure that inflation (what happens when the prices of goods and services rise) doesn't lead to your benefits not being enough to purchase the basic things you need to live. For example, if one year the cost of goods and services were to cost twice as much on average as the year before, you would only be able to buy half as many goods and services with the same amount of money.

When Do You Get a COLA From Social Security?

Each year, the Bureau of Labor Statistics in the federal Department of Labor determines the Consumer Price Index (CPI-W). The CPI-W is a measure of the average change over time in the prices people pay for goods and services. The Social Security Administration (SSA) uses the CPI-W to determine if there will be a COLA.

In order for there to be a COLA in a given year, the CPI-W from the third quarter of the previous year is compared to the CPI-W from the third quarter of the current year. If the CPI-W has increased by less than 0.05%, or if the CPI-W actually decreased, there will be no COLA. If the CPI-W increased by at least 0.1%, there will be a COLA increase in January of the next year.

For example, the 2025 COLA is based on the increase in the CPI-W from the third quarter of 2023 through the third quarter of 2024.

What Is the COLA Controversy?

Some observers and many Social Security recipients think the annual COLA isn't high enough. One argument is that the CPI-W isn't an accurate measure of inflation's impact on seniors, and that the Consumer Price Index - Elderly (CPI-E) should be used instead. The CPI-E is a measure that gives greater weight to goods and services used disproportionately by seniors—medical care, for example.

Are Social Security COLAs Automatic?

COLA increases are automatic. If the CPI-W has increased enough, you'll automatically receive a cost-of-living increase in your benefits. You don't have to ask the SSA or apply for it.

People receiving SSDI benefits will receive the increased benefit starting in January of the year the COLA applies to, while people receiving SSI will get their first increased payment in December of the year before. For instance, SSI recipients will get their first increased payment due to the 2025 COLA on December 31, 2024.

For the details, see our calendar of payment dates for SSDI and SSI.