Social Security to Set 2027 COLA After Oct. 14 Data, With 3.7%-3.8% Increase Expected
Updated
Updated · The Motley Fool · Jul 26
Social Security to Set 2027 COLA After Oct. 14 Data, With 3.7%-3.8% Increase Expected
3 articles · Updated · The Motley Fool · Jul 26
Summary
Oct. 14 inflation data will let the Social Security Administration finalize its 2027 cost-of-living adjustment, earnings limits and maximum taxable earnings shortly after the Labor Department release.
A 3.7% to 3.8% COLA is now expected for 2027, above the 2.8% increase for 2026, because third-quarter CPI-W inflation has been running higher.
Earnings limits are projected to rise to $25,200 for workers below full retirement age and $67,200 for those reaching it in 2027, up from $24,480 and $65,160 in 2026.
The taxable wage cap is estimated to increase to $190,200 from $184,500, exposing an extra $5,700 to the 6.2% Social Security payroll tax—about $353.40 more for affected workers.
A Nationwide Retirement Institute survey found broad confusion around the program: 68% did not know benefits are inflation-protected, 33% misunderstood earnings limits and 73% wrongly thought all income is taxed.