If You're on Social Security, Mark This Key Date on Your Calendar
Key Points
Social Security benefits should be getting a cost-of-living adjustment (COLA) in 2027.
That announcement is slated for mid-October,
You should also find out key Social Security updates when the COLA is revealed.
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Earlier this year, Social Security benefits got a 2.8% cost-of-living adjustment (COLA). Current estimates are calling for a larger increase in 2027. But at this point, you may be tired of guessing how much your monthly checks will increase.
The good news is that you shouldn't have to wait much longer to find out what your 2027 COLA is. The Social Security Administration (SSA) is scheduled to make that announcement in a little more than a month.
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Stay tuned on Oct. 14
The SSA is scheduled to announce the 2027 COLA on Oct. 14. The reason a COLA can't be announced beforehand is that those raises are based on third-quarter changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
As of this writing, only July's CPI-W reading is available, and August's should be available by the end of the week. But the SSA needs September's data as well to calculate a COLA. Since that's not coming out until Oct. 14, a COLA cannot be revealed until then.
Of course, just because an official COLA announcement won't come out for about another month doesn't mean you need to be totally in the dark. Current COLA projections are 3.4% to 3.6%, but that's based on July's inflation data only. Still, it may give you an idea as to how much your benefits could increase in January.
It's not just a COLA that's getting revealed
Oct. 14 is a big day for Social Security, not just because of the COLA announcement. The SSA is also slated to share key updates that could impact seniors and working Americans.
For one thing, the SSA should announce a new earnings test limit for 2027. The earnings test applies to seniors on Social Security who work while collecting benefits before full retirement age.
The SSA should also announce the program's wage cap for 2027. This change matters more to working folks than to retirees.
As a reminder, Social Security is primarily funded by payroll taxes. But only a certain amount of wages is taxed each year. The current limit is $184,500, but that figure is likely to rise in 2027, which means higher earners need to pay attention.
Other key changes to be announced include Social Security's maximum monthly benefit for 2027 and the earnings threshold for work credits. Work credits are what allow people to qualify for Social Security retirement benefits in the first place.
All told, there should be a huge information dump alongside the COLA on Oct. 14. And from there, retirees and workers alike should hopefully be in a better position to do some financial planning for the new year.
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