WASHINGTON (AP) — The Social Security Administration projected Wednesday that the annual cost-of-living adjustment for older adults and people with disabilities will go up by 3.6% beginning in 2027, with some recipients complaining that is not enough to offset soaring prices.
The adjustment translates to $75 extra per month for the nearly 72 million people who receive monthly Social Security benefits and about 7.3 million beneficiaries who get Supplemental Security Income.
The announcement comes as inflation adds pressure on household budgets and businesses and as midterm elections are weeks away.
The cost-of-living adjustment, or COLA, for retirees and disabled beneficiaries is financed by payroll taxes collected from workers and their employers, up to a certain annual salary. That is set to increase to $192,300 in 2027, from $184,500 in 2026.
The agency’s commissioner, Frank Bisignano, said in a statement that the adjustment will give recipients “greater financial stability.”