Key Points
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Social Security benefits are getting more than just a 3.6% COLA in 2027.
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Beneficiaries who work before full retirement age can earn more income before benefits are withheld.
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Higher earners will have to pay more into Social Security, while qualifying for benefits gets harder.
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If you collect Social Security, there’s probably been a big question on your mind: What will your 2027 cost-of-living adjustment, or COLA, amount to?
At last, we have an answer. The Social Security Administration just announced that the 2027 COLA will be 3.6%. That raise is the largest to arrive in years, and it’s considerably more generous than the 2.8% COLA seniors received at the start of 2026.
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But while a 3.6% COLA might dominate the news in the coming days, that’s not the only Social Security change in store for 2027. Here are some other big updates to know about.
A larger earnings test limit
Social Security’s earnings test applies to people who work while receiving benefits before reaching full retirement age, which is 67 for anyone born in 1960 or later. Once full retirement age arrives, you can earn any amount of money from a job without reducing your benefits.
If you won’t reach full retirement age by the end of 2027, your earnings test limit is $25,560, up from the current $24,480 limit. Beyond that, you’ll have $1 in Social Security benefits withheld for every $2 in earnings.
If you will reach full retirement age by the end of 2027, the earnings test limit is higher. You can earn up to $67,920 without having benefits withheld, up from the current limit of $65,160. Beyond that, you’ll have $1 in Social Security benefits withheld for every $3 in earnings.
Notice that exceeding the limits of the earnings test only results in having benefits withheld. You’re not giving that money up permanently.
Once full retirement age arrives, you’ll get those withheld benefits refunded to you in the form of larger checks. But in the near term, it’s important to prepare for reduced benefits if you’re relying on that money to cover your costs.
A larger maximum monthly benefit
Most Social Security recipients aren’t eligible for the program’s maximum monthly benefit. To snag it, you need to be a very high earner throughout your career.
This year, Social Security’s maximum benefit at full retirement age is $4,152. Next year, that maximum full retirement age benefit rises to $4,188.
However, that’s only the maximum payday at full retirement age. You’re allowed to delay your Social Security claim beyond that point, and doing so increases your benefits by 8% for each year you wait, up until you turn 70.
A new wage cap
Social Security gets most of its revenue from payroll taxes. Workers pay into the program at a rate of 6.2%, as do employers, on a certain amount of wages that’s capped each year.
The current Social Security wage cap is $184,500, so earnings beyond that point aren’t taxed to fund the program. In 2027, the wage cap is increasing to $192,300. This change won’t affect people earning an average salary, but higher earners will have to pay more.
A new work credit value
Many people aren’t familiar with work credits in the context of Social Security, but they’re how retirement benefits are earned. You need 40 lifetime work credits to qualify for Social Security, and you can earn up to four credits per year.
The current value of a single Social Security work credit is $1,890. In 2027, that’s increasing to $1,970.
If you work full-time, you probably won’t have much difficulty getting four Social Security work credits in 2027. If you’re a part-time or freelance worker, pay attention, especially if you’re nearing retirement and need a few more work credits to lock in those Social Security checks.
All told, there’s a lot that’s changing with Social Security in 2027. Read through these changes carefully, because you never know if you might be impacted.
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