Cost of Living Adjustment 101: The Basics You Must Grasp

Social Security Disability Insurance (SSDI) is a very important support for people who cannot work because of a disability. To help people receiving SSDI benefits keep up with increasing prices, the Social Security Administration (SSA) uses the Cost of Living Adjustment (COLA) system.

Understanding COLA

The Cost of Living Adjustment (COLA) is a yearly raise in Social Security benefits. It is meant to help recipients keep up with the increasing living costs. This also applies to those receiving SSDI benefits. COLA is determined by looking at the changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which keeps track of how the prices of important things people need go up and down.

Working Model of COLA

When the CPI-W goes up and shows that the cost of living has increased over a year, the SSA raises Social Security benefits to keep up with the rising expenses. This change is usually made in January of the following year. However, if the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) does not increase or show a decrease, there will not be a cost-of-living adjustment (COLA) that year and the number of benefits will stay unchanged.

By the People, For the People

For people who can’t work because of a disability and depend on SSDI benefits, COLA is essential. People who have disabilities often have to spend more money on medical care, specialized equipment, and housing that is easy to access. This can make it difficult for them to afford their everyday living expenses. The COLA increase ensures that people who receive benefits can adjust to these higher expenses and maintain a good quality of life.

Price Hike Protection

The increase in benefits given by COLA helps protect disabled people from rising prices. This helps them feel secure economically and allows them to concentrate on their health and well-being.

The Cost of Living Adjustment helps people with disabilities keep up with the increasing cost of living and inflation. It protects their financial well-being by adjusting their benefits accordingly. COLA allows people with disabilities to keep their quality of life steady, even when the economy changes. It is important for people who make important decisions always to check and make COLA better for disabled people. This will ensure that SSDI is a helpful support for those who need it the most.

If you are disabled or were denied disability benefits, it is important that you hire an experienced Social Security disability attorney immediately. Call 818-293-4980 for your initial free consultation in our office or the comfort of your home. The Kenton Koszdin Law Office, a Social Security attorney in Van Nuys, can help you navigate the application process for the best possible outcome for you and your family.