Social Security October update: 4 major changes coming soon that could affect your 2027 benefits

Social Security October update: Social Security’s annual October update is almost here, and the cost-of-living adjustment (COLA) is not the only number worth watching.

The Social Security Administration is set to release its list of 2027 program updates on October 14, 2026. The announcement will give workers and seniors a clearer idea of how Social Security benefits and taxes will change next year.

Here are four major changes expected in the announcement.

2027 Social Security COLA Will Be Announced

The COLA will likely be the most closely watched part of the October announcement because it determines how much Social Security checks will increase beginning with the January 2027 payment.

The Senior Citizens League currently estimates that the 2027 COLA will be around 3.5%. However, that is only a projection, and the actual COLA could be slightly higher or lower.

The official figure is expected to be announced on October 14.

Social Security’s Maximum Taxable Earnings Will Increase

The maximum taxable earnings limit is another number set to change in 2027.

In 2026, the maximum amount of earnings subject to Social Security taxes is $184,500. Most people earn below that amount, so they pay Social Security payroll taxes on all of their income.

The limit will increase next year, with the change affecting higher earners.

As The Motley Fool reported, traditionally employed workers pay 6.2% in Social Security taxes, while self-employed workers pay 12.4%, up to the applicable taxable earnings limit.

The Quarter of Coverage Amount Will Change

The amount workers need to earn to receive a Social Security credit will also increase in 2027.

Workers generally need 40 Social Security credits to qualify for retirement benefits. In 2026, one credit is based on $1,890 in earnings, and workers can earn up to four credits in a year.

The earnings amount needed to earn a credit will increase next year, although the increase is expected to be small.

Social Security Earnings Test Limits Will Rise

The fourth change involves people who are working while collecting Social Security before reaching full retirement age.

In 2026, beneficiaries who remain below full retirement age throughout the year lose $1 in benefits for every $2 they earn above $24,480.

For people who reach full retirement age in 2026, the rule is different. They lose $1 in benefits for every $3 they earn above $65,160, but only for earnings received before their birth month.

These limits will increase in 2027, allowing working beneficiaries to earn more before the earnings test affects their benefits.

The Motley Fool also notes that benefits withheld under the earnings test are accounted for through a one-time benefit increase when the beneficiary reaches full retirement age.

October 14 Is the Date Social Security Beneficiaries Should Watch

The Social Security Administration is expected to release the 2027 updates on the morning of October 14, 2026.

The announcement will provide the new figures for the COLA, maximum taxable earnings, quarter of coverage and earnings test limits.

For workers and Social Security beneficiaries, those numbers will show how several important parts of the program are set to change in 2027.