The adjustment translates to $75 extra per month for the 73 million people who receive monthly Social Security benefits and nearly 7.5 million beneficiaries who get Supplemental Security Income.
The announcement comes as inflation adds pressure on household budgets and businesses and as idterm 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.”
Senior advocacy groups say the COLA is a strong reminder of the financial straits of many older people.
“There’s a lot on the line financially right now for older Americans — one in five have no retirement savings, and more people feel financially insecure this year than last. That makes Social Security’s cost-of-living adjustment critically important,” said AARP CEO Dr. Myechia Minter-Jordan.
Social Security faces a looming funding shortfall
The Social Security Administration faces a looming bankruptcy date if a funding shortfall is not addressed by Congress.
The June 2026 Social Security and Medicare trustees' report states that Social Security’s combined trust funds — which cover old age and disability recipients — will be unable to pay full benefits beginning in 2034. After that, incoming revenue would cover about 83% of scheduled benefits.
