Average Disability Benefit Increases To $1,483: Hefty Increase In Benefits Of Up To 8.7% Highest Over 3 Decades

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With inflation hitting an all-time high, social security benefits have risen the highest in over 40 years. The monthly maximum Federal amounts for benefits in 2023 are $914 for individuals, $1,371 for an eligible individual with a spouse, and $458 for any essential person. 

The 2023 COLA affects Social Security Disability Benefits. The Social Security Administration announced the historic Cost of Living Adjustment as it raised the amount that beneficiaries stood to gain every month in 2023.

There has been a rise in prices that covered just about everything. And the pace of growth has been substantial, something not seen in over four decades. Fortunately, beneficiaries of social security benefits have calculated that their disability benefits and other payments are indexed to inflation to help them maintain their pre-pandemic purchasing power. 

But unfortunately, this historic 8.7% rise announced by the SSA will not cover the completed increase in the high cost of living. But it has raised payments for disability benefits on average by around $119 a month. It works out to an extra $1,428 a year. 

Americans benefitting from Supplemental Support Income have their maximum amount increase jump by $73 a month. For couples, the gain was $110 a month. 

Qualifying For The Social Security Disability Payment

 Close to 16.5 M Americans were beneficiaries of either the Social Security Disability Insurance (SSDI) or the Supplemental Security Income (SSI) at the start of 2023. The qualification varied for each of the programs, and they were funded in various ways. The SSDI is contributory with workers paying into the program through a tax levied on their wages. But the SSI is a need-based one and is non-contributory. 

Anyone with blindness or a disability who has limited resources or income could qualify for the SSI. 

The requirements for the Supplemental Security Income benefits are rigid as the program has been devised to support specific grounds among low and moderate-earning Americans. 

The Social Security Disability chart reveals a Cost-of-Living increase that applies to Supplemental Security Income (SSI) payments. The huge 8.7% increase has become effective from January this year. This pay chart is updated by the SSA each year. It helps you know the monthly payment you can expect. 

The Social Security Disability Benefits Pay Chart – 2023 

A rise in the cost of living has a proportional effect on Federal benefits rates. The SSA relies on the Consumer Price Index released by the Dept. of Labor to arrive at the amount that is to be disbursed to each beneficiary.  For instance, high inflation is invariably linked to an increase in the cost of living. Thus, an adjustment of the cost-of-living adjustment (COLA) offsets some of the extra costs to a certain extent. 

Each year the Supplemental Security Income payment amount increases with the increase in the COLA amount. The Social Security Disability pay chart reveals the highest payment that is calculated for both 2022 and 2023.

While for eligible individuals was $10,092 in 2022, there was an increase of $914 in 2023 which effectively increase the total amount to $10,970.

For eligible couples, there was an increase of $1,371 over the $15,136 amount in 20222 taking the total amount to $16,455.

In the case of an essential person, the total of $5,058 in 2022 increases by $458 to end 2023 at $5,498. It is worth noting that this Social Security disability benefits chart applies only to Supplemental Security Income (SSI) payments. It does not apply to benefits through Social Security Disability Insurance (SSDI).

The Maximum Amount For The Monthly Benefits For Both SSI And SSDI In 2023

The maximum payments under the Supplemental Security Income are $914 every month for individuals and $,371 for married couples. For the Social Security Disability Insurance (SSDI) the maximum amount comes to $3,627 a month. 

The maximum SSDI benefits are between 150% and 180% of the benefit given to workers. 

The maximum amount payable at the time of retirement is $3,627 a month. But if someone retires by the age of 62, the benefits come down to $2,572. And for those who retire later, say at the age of 70, the benefits increase and come to $4,555.

Qualifying For Social Security’s Highest Disability Benefits

Social Security benefits are normally linked to retirees. But there are around 9 million Americans who are within that age and considered working-age Americans who receive disability benefits. The Social Security Administration has estimated that workers born in 2000 have a 25% chance of becoming disabled before they reach their full retirement age, which at present is 67.

SSDI recipients receive an identical COLA as received by other beneficiaries. Thus, in 2023 any worker who gets a Social Security disability benefit will see an 8.7% rise in their monthly check. 

The maximum Social Security Disability Benefit in 2023 is $282 more than the 2022 figures and comes to a total of $3,627 a month. The maximum amount given as SSDI benefits in any given year is equal to the maximum Social Security benefits at the time of full retirement. 

But the SSDI benefits are much lower on average. Even if you factor in the unusually high cost-of-living adjustment in 2023, the monthly disability benefits are measly, and come to just #1,483. That comes to $344 less than the average Social Security retirement benefit of $1,827 per month in 2023.

Although retired workers drawing pensions are generally treated as having reached retirement age, disability benefits are way lower as Social Security uses the average index monthly earnings to arrive at the amount for both earnings. 

The highest earnings are for those who continue working till old age and beyond. Workers drawing disability benefits tend to miss out on this particular count. Their working years are short, and they invariably miss out on the most lucrative and beneficial period of their career. 

Surviving on just the retirement benefits or the SSDI, is a tough proportion and workers surviving solely on disability benefits should search on benefits.gov for other forms of assistance given by the government.