Social Security Eyes 4.2% 2027 COLA as Retiree Earnings Limits Rise
Updated
Updated · 24/7 Wall St. · Jun 2
Social Security Eyes 4.2% 2027 COLA as Retiree Earnings Limits Rise
3 articles · Updated · 24/7 Wall St. · Jun 2
Summary
A projected 4.2% cost-of-living adjustment could lift Social Security benefits in 2027, marking the fourth-largest increase in 36 years if October estimates hold.
That bigger raise would reflect stronger inflation, meaning higher monthly checks may still leave many retirees with weaker overall buying power.
2027 rules are also expected to let beneficiaries under full retirement age earn more before benefits are withheld; the 2026 caps are $24,480 and $65,160, depending on timing.
Current workers may need higher earnings to secure work credits, while Medicare premiums—up nearly 10% in 2026 to $202.90—could absorb much of any benefit increase.
Together, the changes point to larger nominal benefits but tighter planning pressures for retirees balancing work income, healthcare costs and inflation.