US Social Security benefits to rise by 3.6 percent in 2027

What the report says

The US Social Security Administration said retirement and disability benefits will rise by 3.6 percent starting in 2027, a change that Al Jazeera reported will add about $75 a month on average for older adults and people with disabilities. The adjustment follows the release of September inflation data and is one of the largest annual cost-of-living increases in recent years.

According to the report, the increase will take effect in January for about 72 million Social Security recipients, while nearly 73 million people receiving Supplemental Security Income are scheduled to see the change at the end of December. The maximum amount of earnings subject to Social Security payroll taxes is also set to increase, to $192,300 from $184,500 in 2026.

Social Security is the main federal retirement and disability support program in the United States, funded through payroll taxes and used in part as a replacement for income after people leave the workforce. The annual COLA is tied to the Consumer Price Index for urban wage earners and clerical workers, a measure watched closely by retirees because it affects whether benefit increases keep pace with rising prices.

The report placed the announcement in the context of continuing inflation pressures in the US, which many older Americans say are still outpacing benefit growth. That backdrop helps explain why the annual adjustment remains politically and economically significant for millions of households.