Today we are living through unprecedented inflation, which makes it difficult for individuals on fixed incomes to keep ahead of their expenses. 

Fortunately, the Social Security Administration recognizes this and allows for an annual cost of living increase to Social Security retirement benefits and disability insurance benefits (SSDI). Anyone who relies on these critical Social Security programs will see an increase in their payments beginning in January of 2023 because of the latest cost of living increase.

How Will This COLA Increase Affect Social Security Disability Insurance?

For the more than 7.7 million individuals who rely on Social Security Disability Insurance, they will see an increase of 8.7 percent beginning in January 2023. Social Security reports that this will increase the average monthly benefit payment for a disabled worker to $1,483. For those with a spouse and children, the average increase will bump benefits to around $2,616.

But Will This Also Affect SSDI Income Ceiling Limits?

Social Security Disability Insurance was developed to assist disabled individuals unable to work. Consequently, Social Security imposed caps on the amount that recipients could earn in additional income, or what Social Security calls “substantial gainful activity” or SGA. If a recipient exceeds the SGA cap, he or she may lose their SSDI eligibility. 

Like the cost-of-living increase, the SGA income cap is also adjusted annually. In 2023, an SSDI recipient will be able to earn up to $1,470 from other work without risking their disability benefits. This is an increase from $1,350 in 2022. For recipients who are blind, the SGA income cap is higher and has increased from $2,260 in 2022 to $2,460 in 2023.

Other incentives offered by Social Security are designed to help disabled individuals explore work options. One of these incentives is the Trial Work Period which allows SSDI recipients to earn an unlimited amount of income for any nine months over a five-year period without losing their disability benefits. During 2022, if a recipient earned at least $970 in any given month, it would count as a month toward this work period quota. In 2023, this figure will increase to $1,050.

Getting Experienced Assistance with Your Social Security Benefits

Applying for Social Security benefits can be complicated. At Silver & Silver, we have dedicated our over 40-year careers to individuals who need help getting the essential benefits they need. Our experienced Social Security Disability insurance lawyers can help you navigate the process, whether you’re submitting your application or appealing a denial. Call us at (610) 638-7255 or contact us through our website contact form to schedule a complimentary consultation.

Disclosure:

This website is designed to provide only general information. The information presented on this website is not formal legal advice. You should not rely on any general information from any source for making legal decisions. Each legal matter is unique and requires specific attention from a qualified and experienced attorney. Unless a representation agreement has been signed with the Law Offices of Silver and Silver, we are not your legal representatives.