If you receive disability benefits through the Social Security Administration (SSA), your payments will be affected by something known as the Cost of Living Adjustment, or COLA. This important metric has a major impact on how much you receive in benefits, both now and in the future. But what exactly is the Cost of Living Adjustment, and why might it matter to you?
What is the Cost of Living Adjustment?
In simple terms, the Cost of Living Adjustment is a calculation that determines how much a person’s benefits rise year over year. This affects many things, including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) payments, and is also used to calculate veterans disability benefits. In 2026, the COLA is 2.8%, meaning that Social Security benefits increased by 2.8% compared to the previous year.
How is the COLA Determined?
The Cost of Living Adjustment is determined through something known as the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This is a measurement of a basket of goods and services that most people purchase, which is used to determine how much the cost of living has increased year over year. The higher the index rises, the greater the COLA will be in a given year.
Why Does the COLA Matter?
This adjustment matters because it means that all disability benefits will automatically increase to match increases in the cost of living. Without this automatic adjustment, beneficiaries might need legislative or administrative action to see their benefits increase, putting them at risk of disruption due to political interference. With the COLA, however, this is thankfully not an issue.
How Does the COLA Impact You?
Thanks to the COLA, Social Security beneficiaries do not need to worry as much about whether their benefits will cover their basic expenses. It also means you can feel safe applying for SSDI or SSI benefits without worrying they may fall behind. However, if you do face disruptions to your benefits, you should contact a lawyer with experience handling disability claims, who can advise you on your legal rights.
If you or a loved one need assistance applying for SSDI or SSI benefits, it is important that you seek the guidance of an experienced Social Security Disability benefits lawyer. The lawyers at Sullivan & Kehoe, LLP have over 50 years of combined experience between its attorneys and are available to you or your loved one in obtaining Social Security Disability or Supplemental Security Income benefits. To schedule a consultation with our New York Social Security Disability benefits lawyers, call (631) 823-7155.
