What to know about benefits
The Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027, the largest increase since 2023. This adjustment aims to help beneficiaries cope with rising inflation and the increasing costs of essential goods.
Why it matters
The COLA is a critical financial lifeline for millions of retirees and disabled individuals, directly impacting their ability to manage daily living expenses.
The Social Security cost-of-living adjustment will be 3.6% in 2027, the Social Security Administration said Wednesday.
The cost-of-living adjustment, or COLA, provides an annual inflation adjustment to both Social Security and Supplemental Security Income, or SSI, benefits.
Social Security retirement benefits will increase by $75 per month on average, the agency said.
"Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability," Social Security Commissioner Frank Bisignano said in a statement.
Around 72 million Social Security recipients will see the benefit increases in January, according to SSA. About 7.3 million SSI beneficiaries will receive higher payments starting Dec. 31, the agency said.
The 3.6% COLA for 2027 is in line with Social Security experts' projections , which last month forecast an increase of 3.5% to 3.6%.
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