Note: this article is not intended to provide investment, legal, tax, or accounting advice. Before making decisions with investing, legal, tax, or accounting ramifications, you should consult appropriate professionals for advice that is specific to your situation.

As we head into 2027, millions of Americans who rely on Social Security and Supplemental Security Income (SSI) will see their benefits change thanks to the annual Cost-of-Living Adjustment (COLA). These yearly increases are designed to help beneficiaries keep up with rising prices, so these essential programs can continue to provide meaningful support.

This year’s COLA is 3.6% – a noticeably bigger bump than last year’s 2.8% adjustment. Below, we walk through the key changes to expect and what they may mean for you or the person whose finances you help manage.

Key payment adjustments for 2027

The higher SSI payments arrive at the end of December 2026, and the Social Security increase shows up with January 2027 benefits. Here are some of the most important figures to know:

• Federal SSI payment standard (Federal Benefit Rate):
  
  • $1,029 per month for an individual (up from $994)
  • $1,544 per month for a couple (up from $1,491)
• Social Security Disability Insurance (SSDI) thresholds:
  
  • $1,770/month Substantial Gainful Activity (SGA) for non-blind individuals (up from $1,690)
  • $2,950/month SGA for blind individuals (up from $2,830)
  • $1,270/month for the Trial Work Period threshold (up from $1,210)
• Estimated average monthly Social Security benefits (after the COLA):
  
  • $2,170 for all retired workers (up from $2,095)
  • $1,701 for all disabled workers (up from $1,642)
  • $3,077 for a disabled worker with a spouse and one or more children (up from $2,970)
  • $2,005 for an aged widow(er) living alone (up from $1,936)
• SSI student earned income exclusion: $2,500 per month, up to $10,080 for the year (up from $2,410 and $9,730). This lets students under age 22 keep more of what they earn without reducing their SSI.
• Maximum Social Security benefit for a worker retiring at full retirement age: $4,188 per month (up from $4,152)

One number that isn’t changing: SSI resource limits stay at $2,000 for an individual and $3,000 for a couple. We’ll come back to why that matters below.

Changes for beneficiaries who work

If you or someone you support earns income while receiving benefits, a few work-related limits are rising, too:

• Retirement earnings test (under full retirement age): 25,560 per year (2,130/month), up from $24,480. Above that, Social Security withholds $1 in benefits for every $2 earned.
• Retirement earnings test (the year you reach full retirement age): (5,660/month), up from $65,160. Above that, $1 is withheld for every $3 earned – and only for months before reaching full retirement age. Once you hit full retirement age, there’s no limit.
• Quarter of coverage: $1,970 in earnings now earns one work credit, up from $1,890.
• Maximum taxable earnings for Social Security: $192,300, up from $184,500. (The payroll tax rate itself stays the same at 7.65% for employees and 15.3% for self-employed workers.)

For people receiving SSDI, the higher SGA and Trial Work Period thresholds mentioned above are especially worth noting – they give a little more room to work without putting benefits at risk.

Medicare updates

Medicare premiums and deductibles are expected to rise slightly again in 2027. The Centers for Medicare & Medicaid Services (CMS) typically announces official figures in November, but the Medicare Trustees have published projections that give a helpful preview:

• Part B monthly premium: projected at $209.50, up from $202.90 in 2026
• Part B annual deductible: projected at $292, up from $283

Because most people have their Part B premium deducted directly from their Social Security payment, any premium increase will take a bite out of the COLA. The good news is that this year’s 3.6% COLA is projected to outpace the roughly 3.25% Part B increase, so most beneficiaries should still see a net gain. (AARP)

Medicaid adjustments

The federal 2027 Medicaid spousal-impoverishment standards – the Community Spouse Resource Allowance (CSRA) and Monthly Maintenance Needs Allowance (MMNA) – haven’t been released yet. These standards help protect a healthy spouse from losing financial stability when their partner needs long-term care. If you or a loved one rely on Medicaid long-term care benefits, keep an eye on your state Medicaid office or the official CMS announcement.

What this means for beneficiaries and their caregivers

A 3.6% increase is a welcome boost, and it’s also a good moment to check in on budgets, benefits, and eligibility so everything stays on track heading into the new year.

Here are a few practical steps for beneficiaries, family members, and fiduciaries:

1. Review benefit amounts and update budgets: Confirm that the new amounts show up in the end-of-December SSI payment and January 2027 Social Security payment, then adjust spending plans as needed. For example, an individual receiving the full federal SSI rate will see about $35 more each month – enough to make a real difference for essentials like groceries, utilities, or transportation.
2. Keep a close eye on SSI resource limits: Here’s the catch with a bigger COLA – while monthly payments are going up, the resource limits are not. They remain $2,000 for an individual and $3,000 for a couple, just as they have since 1989. Extra money that isn’t spent can build up faster than you’d expect, so tracking balances closely helps preserve eligibility and prevent benefit interruptions.
3. Coordinate across programs: A higher benefit may affect income-based supports like Medicaid, housing assistance, or SNAP. It’s worth checking how the new amounts interact with other programs you or your loved one rely on.
4. Review work plans for SSDI recipients: If the person you support works part time, the higher SGA and Trial Work Period thresholds may give them a bit more flexibility. It’s a good time to revisit their work and earnings plan.
5. Help safeguard benefits through managed spending: Tools like the True Link Visa® Prepaid Card help fiduciaries, representative payees, and caregivers manage funds for a client or loved one. With custom controls and real-time tracking, True Link’s Spending Settings can help make sure benefits go toward approved expenses – like food, utilities, or transportation – while reducing the risk of misuse or fraud.

Staying informed about the 2027 Cost-of-Living Adjustment updates and taking a little time now to adjust budgets, verify payments, and safeguard eligibility – can help you and the people you support start the new year on solid footing.

Sources

• 2027 Cost-of-Living Adjustment (COLA) Fact Sheet, Social Security Administration
• Medicare Part B Premium Projected to Rise Slightly in 2027, AARP

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