Social Security’s COLA Announcement Drops Oct. 14, but That’s Not the Only Reveal Happening That Day
October 14 brings more than just the official 2027 Social Security COLA reveal. Both retirees and workers stand to be affected by several other announcements dropping the same day, and some of the news is better for certain groups than…
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If you’re someone who collects Social Security, there’s a reason to mark October 14 on your calendar. That’s the date the Social Security Administration (SSA) is scheduled to reveal an official 2027 COLA.
There’s been lots of speculation about the COLA so far, and current estimates are putting next year’s raise in the 3.5% to 3.6% range. Even the smaller number would be a vast improvement over the 2.8% COLA that arrived this past January.
But the upcoming COLA isn’t the only thing getting announced on Oct. 14. There are other important pieces of information dropping for both retirees and workers.
What retirees need to look out for
In addition to an official COLA, on Oct. 14, the SSA should give an update on the program’s earnings test limit. The earnings test applies to Social Security recipients who work while collecting benefits prior to reaching full retirement age (FRA).
Each year, there’s an earnings limit people in that situation have to stick to if they want to avoid having benefits withheld. This year, for example, beneficiaries who won’t reach FRA by the end of December have $1 in Social Security withheld per $2 of earnings above $24,480.
The SSA is likely to increase the earnings test limit in 2027. That’s good news for people who want to work, since it means they should get to earn more money before having benefits withheld.
In addition, Social Security’s maximum monthly benefit is expected to rise in 2027. That’s largely due to the fact that benefits are getting a COLA.
What workers need to pay attention to
Some of the news dropping on Oct. 14 won’t impact retirees so much as working folks. And one thing people with jobs need to focus on is the Social Security wage cap.
Each year, there’s a wage cap that determines how much income is taxed to fund Social Security. This year, the cap is $184,500. But next year, that limit is likely to increase due to wage growth.
While a higher earnings test limit is a good Social Security update, a higher wage cap isn’t — at least not for higher earners who might have to pay more in 2027.
Additionally, the SSA should reveal the new earnings requirement for work credits. Work credits are what enable people to qualify for Social Security benefits in retirement.
Workers need a total of 40 lifetime credits to be eligible for Social Security, and the maximum of credits that can be earned in a single year is four. This year, $1,890 of wages earns one work credit. Next year, that number is likely to rise. This means part-time workers will need to pay attention to the new work credit requirements if they need four credits in 2027 to qualify for Social Security down the line.
The good news is that even if the value of a work credit jumps by $80, which it did in 2026, people who work full-time should have no problem getting their four Social Security work credits in the new year. That’s because the minimum wage is $7.25 per hour.
For 40 hours of work per week, that’s $290, or $14,500 per year if we assume 50 weeks of work. Even if the value of a Social Security work credit rises to $2,000, it will only take $8,000 in earnings the entire year to get four credits.
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