But older Americans shouldn't get too excited.
The increase is projected to be just 2.2 percent, or about $28 a month for the average recipient. Social Security recipients have gone years with tiny increases in benefits. This year they received an increase of 0.3 percent, after getting nothing last year.
Some good news for seniors: The trustees project that Medicare Part B premiums will remain unchanged next year. Most beneficiaries pay $134 a month, though retirees with higher incomes pay more.
Both Social Security's cost-of-living adjustment and the Medicare Part B premium are to be announced in the fall.