The Social Security Administration on Wednesday announced a 3.6% cost-of-living adjustment (COLA) for 2027.

The COLA is determined using the consumer price index for urban wage earners and clerical workers (CPI-W) data for the third quarter of the year, including the months of July, August and September. It aims to ensure that the purchasing power of Social Security benefits isn't eroded by inflation.

The cost-of-living adjustment (COLA) is the biggest since 2023 and the Committee for a Responsible Federal Budget (CRFB) says that works out to roughly $900 a year, and estimates the highest earners will see an increase of more than $2,200 a year.

Source: Social Security Administration

Sources: yahoo.com/news & cnbc.com