October 2026 set the main 2027 retirement numbers, led by a 3.6% Social Security cost-of-living adjustment. A cost-of-living adjustment, or COLA, is the annual change to benefits that helps payments keep pace with prices. The increase starts in January 2027 and affects tens of millions of recipients. savers still contribute under 2026 IRS limits while employers apply new Roth, HSA, and Medicare figures during fall enrollment.
Official resources:
- Read the official notice from Irs — Use this primary source to verify the official announcement.
- Read the official guidance from CMS — Use this primary source to verify the official guidance.
Table of Contents
- How much will Social Security pay in 2027?
- Will work or high pay change your benefit?
- How much can you save right now?
- What should you check for Roth, HSA, and Medicare?
How much will Social Security pay in 2027?
The Social Security Administration announced a 3.6% COLA for 2027 on October 14, 2026, in its October advocates update. Payments rise starting January 2027 for 76 million Social Security and SSI recipients. The Administration calls it the largest increase since 2023.
A larger check helps with food, housing, and medical costs. Readers should budget on the gross increase first, then subtract Medicare premiums. The net gain will be smaller for most Medicare enrollees.
Will work or high pay change your benefit?
The Social Security Administration raised the 2027 taxable maximum to $192,300 from $184,500 in 2026. Employees and employers each pay up to $11,922.60 at the 6.2% rate. Higher earners should expect more withholding early in 2027.
Workers under full retirement age face a higher earnings-test exempt amount of $25,560 in 2027. The Administration will withhold $1 for every $2 earned above that line. Full retirement age remains 67 for people born in 1960 or later.
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How much can you save right now?
The Internal Revenue Service still controls contributions with 2026 figures in Notice 2025-67, described in its November 2025 announcement. The limits are $24,500 for 401(k), 403(b), 457, and TSP elective deferrals, $8,000 for age-50 catch-ups, and $11,250 for the ages 60-63 super catch-up. The IRA limit is $7,500.
Milliman describes the widely cited $25,500 401(k) and $75,000 total-additions figures as projections only in its August forecast. The Internal Revenue Service had not published official 2027 elective-deferral limits as of October 20, 2026. Use projections for planning, not for setting contributions.
- Confirm your plan still uses $24,500, $8,000, $11,250, and $7,500 until the IRS posts 2027 figures.
- If you turn 60 to 63 in 2026, check whether the $11,250 super catch-up applies.
- Hold 2027 contribution changes until the official IRS notice appears.
What should you check for Roth, HSA, and Medicare?
Effective January 1, 2026, SECURE 2.0 Section 603 requires Roth catch-up treatment for participants age 50 or older whose prior-year FICA wages from the same employer exceeded $150,000. CAPTRUST explains that catch-ups must go in as Roth after-tax dollars. IRS final regulations from September 15, 2025 allow good-faith compliance in 2026 and apply fully in 2027. The Internal Revenue Service set final 2027 HSA limits in Revenue Procedure 2026-24 at $4,500 for self-only and $9,000 for family coverage, plus a $1,000 age-55-plus catch-up. Those figures control fall 2026 open-enrollment choices for 2027 high-deductible plans.
Workers should elect HSA contributions by the employer deadline to get the full year of tax benefit. The Centers for Medicare & Medicaid Services set the 2027 Part D base beneficiary premium at $41.33, up from $38.99, in its July fact sheet. The national average bid is $296.05, and the Premium Stabilization Demonstration ends after 2026. Trustees project Part B at $209.50, but the agency finalizes Part B in November, trimming the net COLA by about $6.60 per month. Ask payroll to confirm your Roth catch-up election before the first January paycheck.
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