Social Security Eyes 3.5% 2027 COLA as Taxable Earnings Cap Rises to $190,200
Updated
Updated · Yahoo Finance · Sep 8
Social Security Eyes 3.5% 2027 COLA as Taxable Earnings Cap Rises to $190,200
3 articles · Updated · Yahoo Finance · Sep 8
Summary
A 3.5% 2027 COLA would lift the average retired-worker benefit by about $73 a month from just over $2,000, with the official figure due Oct. 14.
The same October update is expected to raise the Social Security wage base to about $190,200 from $184,500, adding tax on roughly $5,700 more income for top earners.
Full retirement age stops rising at 67 under current law, and people born in 1960 or later will be the first group to reach that age in 2027.
Work-related earnings limits for early claimants are also forecast to increase to about $25,200 and $67,200, while Medicare Part B premiums could absorb part of the COLA gain.
No benefit cuts are scheduled for 2027 under current law, even as longer-term funding concerns remain centered on the early 2030s.