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Social Security benefits in 2027, full retirement age and COLA rules
The 2027 COLA is expected to be announced Oct. 14, with estimates around 3.5%, which could lift the typical retiree benefit by about $73 a month.
Social Security is expected to provide retirement income under rules that do not change the full retirement age in 2027, according to analysis cited by Yahoo Finance. Geoffrey Schmidt, a certified public accountant and founder of a retirement education resource, said the full retirement age has finished its increase to 67 for people born in 1960 or later, and it is not scheduled to rise further under current law.
The article also highlights that the official 2027 cost-of-living adjustment, or COLA, is expected to be announced Oct. 14 after the Consumer Price Index report. Estimates discussed by Yahoo Finance place the 2027 increase in the 3.5% range, which AARP says would translate to about a $73 monthly boost for the average retiree benefit.
Yahoo Finance further notes that AARP expects the average monthly benefit for a surviving spouse and Social Security Disability Insurance for the average worker with a disability to rise by about $68 and $57 per month, respectively, if the COLA comes in near 3.5%. The piece also frames the COLA as catch-up for inflation and adds that the 2027 Medicare Part B premium, released later in the fall, typically offsets some of the adjustment.
On taxes, the article says higher earners would see more taken out through the Social Security payroll tax as the taxable earnings cap rises. The 2026 maximum taxable earnings cap is $184,500, and it is forecast to be about $190,200 in 2027, implying a Social Security tax on an additional $5,700 of income, or about $353 for current workers earning above the cap.