Social Security benefits will increase by 3.6 percent in 2027, a jump from the 2.8 percent cost-of-living adjustment provided this year, the Social Security Administration announced Wednesday.

Monthly benefits for nearly 72 million recipients are set to increase by an average of $75 for all retirees beginning in January, the agency said. Increased payments to about 7.3 million Supplemental Security Income recipients are set to begin on Dec. 31 this year.

The new cost-of-living adjustment, while largely in line with forecasts from groups like the AARP, is the highest increase since 2023, when monthly benefits spiked by 8.7 percent in the wake of an inflation surge during the coronavirus pandemic.

Inflation, as measured by the consumer price index, rose by 3.7 percent for the 12 months ending in September, the Bureau of Labor Statistics announced Wednesday. That was up from 3.4 percent over the previous 12 months ending in August.

Average monthly benefits for all retired workers will be $2,170, up from $2,095.

And the maximum amount of earning subject to Social Security tax is set to jump to $192,300, up from $184,500.

“Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability,” Social Security Commissioner Frank Bisignano said in a release. “Under President Donald J. Trump, Social Security is delivering better, faster, higher-quality service for the American people.”

But the increase in benefits puts further strain on a program that already faces insolvency in coming years.

Social Security is projected to become insolvent by the end of 2032, according to a June report from the program’s Board of Trustees. Absent changes to the program, participants would at that point see a 22 percent cut to their monthly benefits.

Some lawmakers have floated various proposals for changes to the program to ensure it doesn’t become insolvent. But nothing has gained traction for legislative action.

“With the insolvency of Social Security’s retirement trust fund just six years away — and with it a deep 22% benefit cut — policymakers should urgently begin the work of enacting trust fund solutions,” The Committee for a Responsible Federal Budget, a nonpartisan policy group, said in a statement Wednesday.

“Given the short time horizon, this should include consideration of COLA changes for current beneficiaries,” the group said. “But it must also include consideration of new or increased revenue sources as well as benefit reforms phased in for future beneficiaries.”