Social Security Gets a Shakeup in 2027. Here’s What’s in Store
Big changes are happening that could impact retirees and workers alike.
Social Security, an enduring program, undergoes changes each year based on inflation and wage growth. 2027 is no exception, with several adjustments impacting retirees and workers. Social Security cost-of-living adjustments, or COLAs, aim to maintain benefits' purchasing power by accounting for inflation. In 2027, benefits will receive a 3.6% COLA, increasing the average monthly Social Security check from $2,095 to $2,170.
However, COLAs often struggle to keep pace with inflation due to their calculation method. Seniors enrolled in Medicare may see their Part B premiums paid directly from their benefits, reducing the benefits' increase. Workers earning over $25,560 will have a smaller Social Security benefit due to the earnings test, with the limit rising from $24,480 to $25,560 in 2027.
High earners can qualify for a larger monthly benefit at full retirement age, which can exceed $4,188 per month by delaying claims until age 70. Social Security's wage cap, currently $184,500, will raise to $192,300 in 2027, affecting higher earners who will have to pay taxes on an additional $7,800 of wages. To become eligible for Social Security, workers must accumulate 40 work credits, with the value of each credit rising from $1,890 to $1,970 in 2027.
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