If you have negotiated the often difficult challenge of receiving Social Security Disability Income, you know that each year the Social Security Administration tweaks its numbers. These annual changes will impact your life now and into the future, as well as the lives of future recipients.
Due to a high rate of inflation, your monthly payments for SSDI increased in 2022.
The largest increase in four decades
According to information from AARP, all Social Security recipients will receive a 5.9% COLA increase for 2022. This includes people on SSDI. The increase represents the largest increase in the program since 1982.
The SSA bases its annual increases on a calculation involving the Consumer Price Index. The formula does have a tendency to not capture the full increase of goods and services. This could have the result of eroding a person’s buying power and standard of living over time.
Another important factor involves the increase in Medicare Part B premiums. These payments come automatically out of SSA payments and have a greater impact on those earning less money.
The average earnings of SSDI recipients
If you receive SSDI, your final payment depends upon multiple factors. Before the recent COLA, all disabled workers in the SSDI program received an average payment of $1,282 a month or $15,384 a year. After the application of the COLA, the average payment increased to $1,358 a month or $16, 296 a year. This increase comes out to $912 for the year.
Since Medicare Part B premiums increased by $170 in 2022, the net increase for most SSDI recipients came to about $742 for this year. You may see a larger paycheck this year, but it could have reduced purchasing power due to inflation.