The Social Security Administration estimated on Wednesday that the annual cost-of-living adjustment for the 73 million people who receive Social Security benefits will go up by 3.6% beginning in 2027. 

The increase will also apply to the 7.5 million beneficiaries who get Supplemental Security Income, the Associated Press reported, and will amount to $75 per month. 

The adjustment, also called COLA, for retirees and disabled beneficiaries is financed by payroll taxes collected from workers and their employers, up to a certain annual salary. In 2027, the salary cap is set to increase to $192,300 from $184,500 the previous year. 

Frank Bisignano, commissioner for the Social Security Administration, said in a statement that the adjustment will give recipients "greater financial stability."