The Social Security Administration said the annual cost‑of‑living adjustment (COLA) for retirees and disabled beneficiaries will rise 3.6% starting in 2027.

The increase works out to about $75 more per month for the roughly 72 million people receiving monthly Social Security benefits and the 7.3 million receiving Supplemental Security Income.

The COLA is funded through payroll taxes collected from workers and employers, with the taxable earnings cap set to rise to $192,300 in 2027 from $184,500 in 2026.

Social Security commissioner Frank Bisignano said the adjustment will give recipients greater financial stability.

Beneficiaries will see the increase applied to their payments at the start of next year.

Advocacy groups note that many older Americans feel the boost does not keep pace with inflation, which rose 3.7% in September year‑on‑year.

A recent AARP poll found three‑quarters of adults 50 and older think a 3.5%‑plus COLA would be insufficient to cover rising costs.

Lawmakers have proposed lifting the payroll‑tax cap to generate additional revenue and extend the program’s solvency, a measure supported by some senators but opposed by many Republicans.