Three Big Changes Coming to Social Security in 2027
The Social Security Administration announced some major changes for 2027. An article by AL.com breaks down exactly what you need to know:
Beginning in January, Social Security recipients will receive a 3.6 percent cost-of-living adjustment (COLA). That equates to an additional $75 each month for the average retiree. This is the fifth-largest COLA in the past 35 years.
The wage cap is also increasing. The maximum amount of earnings subject to the Social Security tax is increasing to $192,300 — that’s up from the current $184,500. Earnings above that amount are not subject to payroll taxes.
The earnings limit is also changing in 2027. That’s how much you can make while collecting retirement benefits before the monthly payments are reduced or withheld. The earnings limit for workers younger than full retirement age will increase to $25,560. For people reaching their full retirement age in 2027, the earnings limit is increasing to $67,920. There is no limit on earnings for workers who are of full retirement age or older for the entire year.
The Seniors Trust is committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual COLA, increased minimum benefits, and ensure the long-term solvency of the Social Security program.
