October Is a Huge Month for Social Security. Look Out for These 3 Big Announcements

For many people, October is a big month. It's when the leaves start to change (which is a huge deal if you're into that sort of thing), the weather gets cool and stays cool, and the pumpkin spice explosion really kicks into gear.

It's also a big month for Social Security. And on Oct. 14, the Social Security Administration should be announcing three major updates to the program. Here's what to look out for.

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1. The 2027 cost-of-living adjustment

Each year, Social Security benefits are eligible for a cost-of-living adjustment, or COLA, that's tied to inflation. Earlier this year, benefits rose 2.8%, but many seniors are hoping to see a larger boost in 2027.

Current estimates are calling for a 2027 COLA in the 3.5% to 3.6% range. But ultimately, September's Consumer Price Index could push the COLA upward or downward.

An important thing to remember is that seniors enrolled in Medicare pay their Part B premiums out of their Social Security checks. If there's a big increase in the cost of Part B next year, it could erode the upcoming COLA, even if it's generous.

2. The new earnings-test limits

Social Security's earnings test applies to people who work while receiving benefits prior to full retirement age. In that scenario, working is allowed. But once wages exceed a certain level, benefits can be withheld on a temporary basis.

In 2026, Social Security recipients have $1 in benefits withheld per $2 of earnings above $24,480, assuming full retirement age won't be reached by the end of the year. If it will, that limit rises to $65,160, and from there, $1 in Social Security is withheld per $3 of earnings.

The earnings-test limits typically increase in line with wage growth. So if you work while collecting Social Security and are subject to the earnings test, there's a good chance you'll be able to earn more money in 2027 before it negatively impacts your benefits.

3. A new wage cap

Social Security gets most of its funding from payroll taxes. Workers pay into the program at a rate of 6.2% that's matched by their employers.

Each year, there's a limit set, known as the wage cap, that determines how much income can be taxed to fund Social Security. This year, the cap is $184,500. Next year's cap is likely to be higher.

But whereas a higher earnings-test limit is good news for those affected, a higher wage cap is bad news for earners making over $184,500. It means people in that boat should expect to see their tax bills go up in 2027.

All told, there are a lot of big Social Security changes arriving later this month. Tune in on Oct. 14 for the big announcement so that you stay in the loop.

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