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Will Social Security Disability payments increase this year?

People who receive government disability benefits have to learn how to survive on a fixed, strict budget. Social Security Disability benefits can be enough to cover the bare minimum of someone’s needs, but there is little margin for error.

With living expenses like rent and food costs on the rise, SSDI benefits don’t go as far as they might have a few years ago. Can the people who currently receive SSDI benefits or those hoping to apply in 2021 expect any sort of increase in the benefits paid?

The Social Security Administration will slightly increase benefits in 2021

Although it doesn’t happen as often as it should for the protection of those dependent on disability benefits, the Social Security Administration (SSA) does sometimes adjust the benefits they pay. The goal is not to make benefits more generous but to ensure the same standard of living as the economy shifts.

Cost of living adjustments increase the benefits received by people on both SSDI and Supplemental Security Income SSI. In 2021, the SSA will increase the benefits they pay by 1.3%. Current recipients do not need to apply for the increase. It is automatic and will impact all of the roughly 70 million Americans who currently receive benefits.

Other changes this year include an increase in the amount of income subject to Social Security tax and the earnings limit for workers both past and under retirement age. Some of these changes could have tax or benefit approval implications. Staying up-to-date with information about benefits can help you if you or a loved one needs to apply for benefits or appeal a denial of your disability claim.