Six Major Changes Coming to Social Security in 2027
In October 2026, the U.S. Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027, marking one of the largest raises since 1993 and continuing six consecutive years of at least 2.5% annual increases. This increase will raise average monthly benefits by approximately $75 for retired workers and around $59 each for disabled individuals and survivors. Alongside this benefit boost, high-earning workers will face a higher payroll tax threshold in 2027 as the cap rises from $184,500 to $192,300. This change could result in additional annual taxes of up to $967 for self-employed individuals earning above this level. Meanwhile, high-income retirees can expect a modest increase in maximum monthly payouts at full retirement age—from $4,152 in 2026 to $4,188 in 2027. However, the increased COLA may accelerate depletion of Social Security’s trust fund reserves, potentially leading to benefit cuts as high as 22% if no reforms are enacted.
Topics: benefits increase COLA adjustment inflation Social Security
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Part of the story Social Security's 2027 COLA Set at 3.6% (7 articles)