3 Social Security Changes Beyond Your Monthly Check to Expect in 2027

Each year, the Social Security change that gets the most attention is the cost-of-living adjustment (COLA).

The COLA directly affects the monthly check that Social Security retirees receive. If the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) shows that there was inflation (as measured based on changes to CPI-W during the third quarter of the year), recipients get a benefit increase.

While this change is an important one, it's far from the only one. There will be multiple modifications to Social Security rules in 2027 that affect not just retirees but also current workers. Here are some of the biggest changes you should be aware of, and plan for.

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1. The retirement earnings test will change

One of the biggest 2027 changes that'll affect current retirees is the change to the retirement earnings test. Essentially, this test limits the amount of money you can make before your Social Security benefits are affected by the income that you bring in.

If you have already reached your full retirement age, you're allowed to work as much as you want and there will be no impact to the monthly Social Security payments you receive. However, if you are under FRA, there's a limit on earnings. Once you go above it, you temporarily forfeit some Social Security benefits. Although Social Security recalculates your benefits to account for this later and your future Social Security checks get bigger, this can still come as a shock if you were counting on both a paycheck and Social Security.

For 2026, if you won't reach full retirement age at all during the year, you lose $1 in benefits for every $2 above $24,480. If you'll reach FRA at some time during the year but are working before that time, you lose $1 in benefits for every $3 above $65,160. We don't know the official numbers yet, but early projections suggest that the lower limit is expected to rise to $25,200 and the higher limit to $67,200.

This is a significant increase, and it means you'll be able to work a lot more before you start to see reductions to your Social Security payments.

2. The amount you need to qualify for a work credit will change

Future retirees will also be affected by Social Security changes next year. Specifically, the amount needed to earn a work credit will change. You need to earn at least 40 work credits before you become eligible for retirement benefits. And you're allowed to earn a maximum of four per year. You must make sure you're earning enough credits if collecting Social Security is part of your retirement plans.

In 2026, the amount needed to earn a work credit is $1,890. This will increase next year, although the specific amount you'll need to earn has not yet been announced, so you'll need to wait until an official announcement is made to find out the minimum required earnings.

3. The total amount of income subject to Social Security tax will change

Finally, the last change will also affect current workers. It relates to the amount of income that you'll owe Social Security tax on.

There is a wage cap, and anything you earn above it is not subject to Social Security tax. In 2026, the limit is $184,500. This number is expected to increase to $190,200 next year.

It's important to be aware of these coming changes, as they can affect your financial plans and your efforts to save for a secure retirement.

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