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Do Social Security Disability Benefits Adjust for Inflation?

Do Social Security Disability Benefits Adjust for Inflation?

Posted By Disability Action Advocates || 13-Apr-2016

For the most part, the price of living in America goes up almost every year as a result of rising inflation and increased taxation. While the average Joe typically doesn't notice an increase in the price of a pack of gum by a few cents from year to year, these increases in the cost of living can snowball and create a truly dire financial situation for those who rely on SSDI benefits to get by.

Cost of living is a term that refers to the amount of money it costs, on average, to live a comfortable life in a particular area. This does not include unessential purchases or recreational expenses, but rather the amount of money a person would have to pay on an annual basis to maintain a healthy and safe lifestyle.

The following expenses are typically included in calculating cost of living:

  • Food and water
  • Housing
  • Clothing
  • Medical care
  • Cost of education
  • Transportation for employment

Do SSDI Benefits Inflate Over Time Too?

Not always. From 1975 to 2008, the Social Security Administration (SSA) would make an annual cost of living adjustment, or "COLA," to both SSI and Social Security Disability benefits every October based on the year's consumer price index. For 2009 and 2010, however, the SSA ceased this practice in an attempt to re-evaluate its COLA policies. These adjustments returned with a 3.6 percent increase in 2012, though subsequent years saw smaller increases of around 1.5 percent. In 2016, however, the SAA will not grant a COLA increase due to an overall decrease in consumer prices over the past year.

If you are struggling to keep up with rising cost of living in your area and insufficient SSDI benefits, you may be able to bring your individual case to the SSA with the help of a Sacramento Social Security Disability attorney from Disability Action Advocates. Having successfully helped thousands of clients over more than 20 years of practice, we know your rights and we know how to get the results you need.

Call (888) 421-8705 or schedule a complimentary case review today to get started.

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