SDI benefits typically receive an annual Cost-of-Living Adjustment (COLA) to help recipients keep pace with inflation and maintain their purchasing power. This annual COLA increase ensures that recipients’ benefits are adjusted to reflect the rising costs of goods and services, particularly in essential areas like housing, healthcare, and groceries, which are often affected by inflationary pressures.
Understanding COLA is important because it helps ensure that SSDI benefits keep up with inflation, preventing a decrease in purchasing power for recipients.