3 Social Security Changes Coming Alongside the Next COLA

For many older Americans, there's no more important announcement coming than an official Social Security cost-of-living adjustment, or COLA. Current projections put the 2027 COLA in the 3.4% to 3.6% range. But if inflation rises or cools substantially this month, the final number could look quite different.

The Social Security Administration should be gearing up to announce the 2027 COLA in mid-October. But that's not the only change to keep an ear out for. Here are three other big changes that should be revealed once the upcoming COLA becomes official.

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1. A new wage cap

Higher earners don't automatically pay Social Security taxes on all their income. Each year, a cap is established, and earnings beyond that threshold are exempt from Social Security taxes.

The current wage cap is $184,500, and it's likely to increase in 2027 in line with wage growth. As such, higher earners should expect to open up their wallets a bit more in the new year.

2. A new maximum monthly benefit

Because Social Security benefits are calculated based on earnings and there's a wage cap, there's also a maximum monthly benefit the program will pay in retirement. This year, the maximum monthly check for workers claiming benefits at full retirement age is $4,152. But that number is likely to increase in the new year.

Of course, some seniors are collecting more than $4,152 a month this year. That's because Social Security rewards recipients who delay their claims past full retirement age. People who do so can accumulate delayed retirement credits, which are worth 8% per year for each year a claim is delayed beyond full retirement age, up to age 70.

3. A new work credit value

It's not a given that everyone who works will qualify for Social Security. To get retirement benefits, workers must earn 40 work credits in their lifetime at a maximum of four credits each year.

Currently, a single work credit equals $1,890 in earnings. But the value of work credits is likely to increase in 2027. This means part-time earners will have to be mindful if the goal is to accumulate four credits in the new year.

That said, some retirees receive Social Security even without the required number of work credits. Those who are eligible for spousal benefits can collect Social Security even if they don't have 40 credits, or any credits for that matter.

But spousal benefits max out at 50% of a spouse's full retirement age benefit. So they're not nearly as helpful as benefits earned directly.

There's a lot of big news that's expected to come out of Social Security this October. Pay attention on Oct. 14, which is slated to be the day of the big reveal.

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