The Social Security Administration announced Wednesday that benefits will increase by 3.6% in 2027, providing a boost to millions of retirees, people with disabilities and other beneficiaries as Americans continue to face rising living costs. The adjustment, known as the cost-of-living adjustment, or COLA, is designed to help benefits keep pace with inflation.

According to the agency, the increase will affect nearly 72 million Social Security beneficiaries, with the average retirement benefit rising by approximately $75 per month. The adjustment will also apply to Supplemental Security Income (SSI), which provides payments to eligible older adults and people with disabilities with limited income and resources. Increased SSI payments will begin on December 31, 2026, ahead of the January payment cycle.

The actual increase will vary depending on each recipient’s current benefit amount. The SSA estimates that the average monthly retirement benefit will rise from approximately $2,095 to $2,170. Beneficiaries will be able to view their personalized COLA notices through their my Social Security accounts beginning in late November, while notices will also be mailed in December.

The adjustment is calculated using changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation tracked by the U.S. Bureau of Labor Statistics. While the increase is intended to help recipients manage rising expenses, some seniors and advocacy groups say that higher costs for housing, food, fuel and healthcare continue to put pressure on household budgets.