Belleville, Illinois, Oct. 13, 2022 (GLOBE NEWSWIRE) -- Former workers receiving Social Security Disability Insurance (SSDI) benefits will see an increase of 8.7% in their monthly benefit in 2023, according to Allsup, a nationwide provider of SSDI representation, return-to-work and veterans disability appeal services.
This increase stems from Social Security’s annual cost-of-living adjustment (COLA)* which will take effect in January 2023. It is the highest increase in four decades, topping the 5.9% increase received in 2022. (*The annual COLA is based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as reported by the U.S. Bureau of Labor Statistics.)
“This significant increase not only attempts to keep up with rising inflation levels, but also provides some relief for SSDI beneficiaries who face ever-increasing medical and living expenses,” said Steve Perrigo, Allsup vice president. “For those living with severe disabilities or serious chronic illnesses, SSDI is a vital financial lifeline.”
The average monthly SSDI benefit will increase to $1,483 in 2023 from $1,364 in 2022, which is an increase of $119 per month or $1,428 annually, according to the Social Security Administration. The average monthly benefit for a disabled worker, spouse and one or more children will increase to $2,616 from $2,407, which is $209 per month or $2,508 annually.
“While the economy is rebounding from the impact of the pandemic, inflation levels have made it challenging to manage day-to-day expenses, especially for those living on disability benefit income from Social Security. This increase will surely provide some financial relief, as well as a small decrease in the traditional Medicare premium for 2023,” Perrigo said.
By the end of 2022, more than 159 million U.S. workers will be insured for SSDI, having paid for this coverage through their FICA payroll taxes. Approximately 7.7 million former workers, with an average age of 55, receive SSDI benefits.
In addition to monthly income, calculated from their FICA payroll contributions while they were working, SSDI beneficiaries with severe medical conditions also have access to:
- Dependent benefits (for children under the age of 18).
- Return-to-work incentives (free assistance returning to work while retaining SSDI benefits).
- Medicare benefits (effective 24 months after SSDI cash benefits begin).
- Protected retirement benefits (SSDI approval freezes earnings records resulting in higher retirement income).
- COBRA extension (extended up to an additional 11 months).
For more information about applying for SSDI benefits, or to see if you are eligible, visit allsup.help/cola-2023 or call 1-800-678-3276.
ABOUT ALLSUP
Allsup and its subsidiaries provide nationwide Social Security disability, veterans disability appeal, return to work, and healthcare benefits services for individuals, their employers and insurance carriers. Allsup professionals deliver specialized services supporting people with disabilities and seniors so they may lead lives that are as financially secure and as healthy as possible. Founded in 1984, the company is based in Belleville, Illinois, near St. Louis. Learn more at Allsup.com and @Allsup or download a free PDF of Applying for Social Security Disability Insurance: Getting It Right The First Time.
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