Key Social Security Updates Expected in 2027

How COLA, Medicare costs, and other shifts could affect current and future beneficiaries

Additional Ways to Benefit

1. COLA

2. Medicare premiums

3. Paying Social Security taxes

4. New labels for claiming ages

5. Full retirement age

6. Social Security earnings test

Social Security uses an earnings test for beneficiaries who are still working but have not yet reached their full retirement age, or FRA. People who begin collecting retirement, survivor, or family benefits before reaching that point and continue earning wages can temporarily see part of their payments withheld if their income rises above a set limit.

That limit is updated every year in line with wage growth. In 2027, beneficiaries who will not reach FRA until a later year will have $1 withheld from their Social Security benefit for every $2 of work income above $25,560, up from $24,480 in 2026. For instance, if you earn $40,000 from work in 2027, your annual benefits would be reduced by $7,220, which is half the gap between $25,560 and $40,000.

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The earnings test becomes less strict in the year you reach FRA. Social Security withholds $1 in benefits for every $3 in earnings above $67,920, up from $65,160 in 2026, until the month you reach that milestone. After that, the earnings test no longer applies: benefits are no longer reduced regardless of how much you earn, and the SSA increases your monthly payment over time to make up for what was withheld earlier.

Different income rules apply to people receiving SSDI. Because disability benefits are meant for people who cannot work for an extended period because of a serious medical condition, those benefits can be lost if earnings are high enough to qualify as what the SSA calls “substantial gainful activity.”

In 2027, that level is $1,770 per month for most SSDI recipients, $80 higher than in 2026. People receiving SSDI because of blindness are subject to a higher earnings limit: $2,950 in 2027, which is $120 above the 2026 amount.

7. Qualifying for benefits

To become eligible for Social Security retirement benefits, you need 40 Social Security credits. Credits are earned by working in jobs where you pay Social Security taxes on your income. Since you can receive up to four credits per year, most workers meet the requirement after about 10 years in the labor force.

In 2027, one credit will be earned for $1,970 in wages, which is $80 more than the 2026 amount. That means you can collect the full four credits for the year once your earnings reach $7,880.