Social Security benefits will increase 3.6% beginning in January for more than 70 million recipients, the Social Security Administration (SSA) said on Wednesday.

The cost-of-living adjustment for 2027, known as COLA, came in markedly higher than the prior year’s hike of 2.8%.

The annual uptick in Social Security benefits aims to keep payments on pace with inflation, which surged in the spring after the outbreak of the Iran war.

The rise in Social Security payments for 2027 amounts to an average increase of about $75 a month for each recipient, the SSA said.

The announcement on Wednesday came after inflation data for September showed price hikes had climbed to a four-month high due in large part to a surge in gasoline costs. The fresh reading marked the final piece of data necessary for SSA to calculate COLA for 2027.

“Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability,” Commissioner Frank Bisignano said in a statement.

The agency will also hike the maximum amount of earnings subject to the Social Security tax, elevating the taxable income limit from $184,500 to $192,300.

Recipients can check their online accounts with Social Security for notifications of their new benefit amount beginning in late November, the agency said. Notices will be sent to recipients by mail starting in early December.