5 Retirement Changes Coming in 2027 That Could Put More Money in Your Pocket
Higher 401(k) limits and a bigger Social Security raise top the list.
The Internal Revenue Service has announced five retirement-related changes set to take effect in 2027, potentially increasing the amount of money available for individuals to save for retirement. The annual contribution limit for 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan will rise from $24,500 to $25,500 in 2027.
Those aged 50 and above can contribute an additional $8,500, bringing their total contribution to $34,000. The catch-up contribution for workers aged 60 to 63 will increase to $11,750, allowing them to save up to $37,250 in a 401(k).
Meanwhile, the income limits for the Saver's Credit, a tax credit for low- and moderate-income workers contributing to retirement accounts, are expanding. Couples filing jointly can qualify for the credit with incomes up to $83,000, up from $80,500, while heads of household can qualify with incomes up to $62,250, up from $60,375. Single filers can qualify with incomes up to $41,500, up from $40,250.
Social Security benefits will also see a 3.6% increase starting in January 2027, the largest raise since 2023. The average retired worker's check will grow from $2,095 to $2,170 per month, and the average retired couple's from $3,238 to $3,355. The standard Medicare Part B premium is projected to rise from $202.90 to $209.50 per month in 2027, though it is not official yet. Overall, 2027 offers workers more room to save for retirement and retirees a larger Social Security raise than in the previous year.
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