Major Social Security Changes for 2027 Include a 3.6% Cost-of-Living Adjustment
The Social Security Administration has announced that the cost-of-living adjustment (COLA) for 2027 will be 3.6%, marking one of the largest increases in years and surpassing the previous year's 2.8%. This raise is expected to provide relief to beneficiaries as inflation remains a concern. In addition to the COLA, several other changes are set to take effect next year. The earnings test limit for those receiving benefits before full retirement age will increase from $24,480 to $25,560 in 2027. For individuals who reach full retirement age by the end of the year, this threshold rises even higher to $67,920. Other notable changes include a new maximum monthly benefit at full retirement age increasing from $4,152 to $4,188 and an increase in the Social Security wage cap for payroll taxes. The 2027 limit will be set at $192,300 compared to the current $184,500.
Topics: COLA (Cost of Living Adjustment) Earnings Test Limit Retirement Planning Social Security