Social Security COLA and earnings test changes expected for 2027

The Social Security Administration is expected to announce the 2027 cost-of-living adjustment (COLA) on October 14, following the release of the Bureau of Labor Statistics’ September Consumer Price Index data.

Projections from advocacy groups suggest a significant increase for the approximately 70 million Social Security and Supplemental Security Income beneficiaries. The Senior Citizens League estimates a 3.5% COLA, which would be a four-year high and could raise the average monthly benefit from $1,940.08 to $2,007.98. AARP has also released an advance forecast, placing the estimate slightly higher at 3.6%.

In addition to the COLA, changes to the Social Security earnings test are expected in 2027. This adjustment would increase the amount beneficiaries can earn from employment before having benefits withheld, potentially providing more financial flexibility for working seniors.