Social Security Announces Key Changes for 2027
The Social Security Administration will announce key updates on October 14, which take effect in January 2027. These include a cost-of-living adjustment (COLA) based on the third-quarter CPI-W inflation data expected to be around 3.5%, marking one of the largest increases in recent years. Additionally, Social Security’s earnings limits for workers under full retirement age will rise from $24,480 and $65,160 (lower and higher thresholds) to an estimated $25,200 and $67,200. These changes aim to adjust for wage growth while ensuring benefits are not withheld beyond certain income levels. The maximum taxable earnings limit will also increase from the 2026 cap of $184,500 to an estimated $190,200 in 2027. This means higher-income workers may pay additional Social Security taxes on up to $5,700 more in income than previously taxed.
Topics: cost-of-living adjustment (COLA) earnings limits inflation retirement benefits
Read the full article at Motley Fool
Part of the story Social Security Announces a 3.6% COLA for 2027 (5 articles)