A 3.6% Social Security COLA in 2027 will push some retired couples past $100,000 a year in benefits
The latest inflation adjustment for Social Security recipients could push the highest earners into six-figure territory.
The 2027 cost-of-living adjustment (COLA) for Social Security benefits will be 3.6%, which, according to the Social Security Administration (SSA), will mean an average increase of $75 a month for those receiving Social Security retirement benefits.
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But for the highest-earning couples who retired this year, the bump will mean more than $100,000 a year in benefits, according to one nonprofit.
If you’re thinking about retirement, read on to learn what you can do to boost your future benefits.
COLA could add up to thousands
Next year’s COLA, which will begin in January 2027, will impact 76 million Americans, according to the SSA.
The SSA estimates that for the average retired worker, monthly benefits will go from $2,095 in 2026 to $2,170 in 2027. For a couple where both individuals are receiving benefits, the average will rise from $3,238 to $3,355 a month.
But according to the nonprofit Committee for a Responsible Federal Budget, while the 2027 COLA amounts to a $900-a-year increase for the average retiree, for the “very richest beneficiaries,” the COLA will mean more than a $2,200 increase.
And when it comes to the highest-earning couples, for those who retired this year at their full retirement age, the COLA means a combined increase of $3,600, which the nonprofit says is “enough to push their combined benefits above $100,000 annually.”
Maximizing Social Security
While it may not be possible for the average American to hit the six-figure mark when it comes to Social Security benefits, there are steps you can take to boost your benefits when you’re ready to retire.
The first thing to consider when retirement is nearing is when you will reach your full retirement age (FRA). The FRA varies from age 65 to age 67, depending on what year you were born. For anyone born in 1960 or later, the FRA is 67.
While you can start receiving benefits as early as age 62, you’ll only receive full benefits if you wait until your FRA. Starting your benefits before your FRA permanently reduces the amount you’ll receive.
According to the SSA, for someone who turned 62 in 2026 and started receiving benefits, their benefits would be about 30% less than what they’d receive at their FRA.
On the other hand, if you delay claiming your benefits past your FRA, the benefits will be increased by a certain percentage point for each month of the delay, up to 70.
If your FRA is 67 and you delay retirement until age 70, your benefit will be 24% more than if you’d retired at 67.
The SSA has a calculator you can use to see the impact that early or delayed retirement will have on your benefits.
The timing of retirement adds up significantly when it comes to how much your benefits will be. For those at the highest benefit level, it can mean a difference of thousands of dollars a month.
Let’s say an individual earned the taxable maximum every year beginning at the age of 22 and started collecting their benefits in 2026. If they retired at 62, benefits would be $2,969 a month. If they waited to hit their FRA, it would be $4,152 a month and if they retired at 70, monthly benefits would be $5,181.
Check your earnings record
Since your benefits are calculated based on your earnings history, in addition to when you retire, reviewing your earnings record regularly is important for two reasons.
One reason is that errors can occur, so the SSA recommends checking your record of earnings every August to make sure your yearly amount is correct.
The second reason is that your benefits are calculated based on your 35 highest-earning years, using a figure known as “average indexed monthly earnings.”
If your earnings record has years with low earnings, or where you didn’t work at all, it can impact your benefit amount. If you don’t have 35 years with earnings, the years without earnings are counted at zero, which can drag down your average indexed monthly earnings.
If you have low- or no-earnings years, you might consider continuing to work to boost your earnings record.
For couples, it’s important to consider what the survivor benefits would be for the individual who outlives their spouse. Experts often suggest that it’s beneficial for the higher earner to delay their benefits, because it will increase the survivor benefit if the higher earner dies first.
While the latest COLA could push the highest-earning couples into six-figure territory, it’s worth noting that only a small fraction of Americans — less than 1% — receive the highest level of Social Security benefits.
Remember that maximizing your Social Security benefit, no matter your income level, is still achievable.
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This article originally appeared on Moneywise.com under the title: A 3.6% Social Security COLA in 2027 will push some retired couples past $100,000 a year in benefits
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.