3 major Social Security changes coming in 2027: What you need to know

NewsSome 76 million Social Security and Supplemental Security Income beneficiaries will receive 3.6% more in 2027, the largest increase in four years. NurPhoto via Getty ImagesSocial Security recipients will receive a 3.6% cost of living adjustment in 2027. But that figure is just one of the key announcements made by the agency this week.Here’s a look at what you need to knowSocial Security COLASome 76 million Social Security and Supplemental Security Income beneficiaries will receive 3.6% more in 2027, the largest increase in four years. The COLA will equal an additional $75 a month for the average retired worker and an additional $59 a month for disability and survivor beneficiaries.The increase matches the fifth-largest Social Security COLA in the last 35 years, topped only by 2022 (8.7%), 5.9% (2021), 5.8% (2008) and 4.1% (2005).The change will come in January 2027 for traditional Social Security retirees, survivors and those with disability. SSI recipients will receive the increase on their Dec. 31 deposit, which will arrive a day early due to the Jan. 1, 2027, federal holiday.Taxable maximumThe maximum amount of earnings subject to the Social Security tax – known as the taxable maximum – is increasing to $192,300, up from $184,500 in 2026.Social Security’s maximum taxable earnings limit is the highest amount of annual wages subject to payroll taxes. Earnings above the limit are not subject to the 6.2% Social Security tax paid by employees or the corresponding tax paid by employers.Earnings limitsSocial Security’s earnings limit determines 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 – 67 years old for anyone born 1960 or later – will increase to $25,560 in 2027. Social Security deducts $1 from benefits for every $2 earned over that amount.The earnings limit for people reaching their full retirement age in 2027 is increasing to $67,920. Social Security deducts $1 from benefits for every $3 earned over that amount until the month before the worker turns full retirement age.There is no limit on earnings for workers who are full retirement age or older for the entire year.Leada Gore is a Senior Managing Producer for the Advance Local trending team, covering finance, government and consumer issues. She worked as a Managing Producer for AL.com, starting at the site in 2013 as the...