HAFNIA FINANCIAL, INC. Client update | October 2026
Your Social Security raise for 2027
What changes in January, and what it means for you
By Jan Gleisner, Investment Adviser Representative, Hafnia Financial, Inc. | Published October 16, 2026
Educational information from Hafnia Financial, Inc., a private investment advisory firm. We are not affiliated with or endorsed by the Social Security Administration, Medicare, or any government agency.
3.6%
Cost-of-living raise
Starts with January 2027 checks. Last year's was 2.8%.
+$75 a month
Average retired worker
From $2,095 to $2,170, before any Medicare premium change
+$117 a month
Average couple, both collecting
From $3,238 to $3,355, before any Medicare premium change
Starting in January, Social Security checks go up 3.6%. That's the biggest cost-of-living raise since 2023, and for the average retired worker it adds about $75 a month. Below is what's changing, how much of the raise Medicare may take back, and a few things worth checking before the new year.
How this raise compares
Social Security sets the raise each fall from the change in consumer prices over the past year (the government's CPI-W index). The 8.7% raise in January 2023 followed the 2022 inflation spike. Since then, raises have stayed between 2.5% and 3.6%.
Cost-of-living raises by the January they were first paid. Source: Social Security Administration.
Where the average raise goes
If your Medicare Part B premium comes out of your Social Security check, part of the raise goes to Medicare. Medicare's trustees estimate the standard Part B premium at $209.50 a month for 2027, up from $202.90. That's a projection, and the official number usually comes out in November. Higher-income retirees also pay a Part B surcharge based on their 2025 tax return, so less of their raise reaches the bank.
Average retired worker. Assumes the standard Part B premium is deducted from your benefit and no income-related surcharge applies. The Part B figure is a projection from the 2026 Medicare Trustees Report, not an announced premium.
Still working? The earnings limit went up too
If you collect Social Security before full retirement age (67 for anyone born in 1960 or later) and still earn a paycheck, Social Security holds back $1 of benefits for every $2 you earn above $25,560 in 2027. In the year you reach full retirement age, the limit is $67,920, the holdback is $1 for every $3, and only the months before you reach that age count. After that, there's no limit. Here's a hypothetical example. Say you're 64, collect $2,000 a month, and earn $45,560 at a part-time job in 2027. That's $20,000 over the limit, so $10,000 of benefits is held back. Social Security typically does this by withholding whole checks starting in January, in this example the first five.
Hypothetical example for illustration only. Source: Social Security Administration, 2027 earnings limits.
At full retirement age, Social Security recalculates your benefit to credit the months it held back, which raises your check from then on. How long that takes to make up what was held back depends on how long you collect. Only wages and self-employment income count toward the limit, not pensions, investment income, interest or other non-work income.
2027 numbers at a glance
| 2026 | 2027
Cost-of-living raise (paid starting in January) | 2.8% | 3.6%
Earnings limit if under full retirement age | $24,480 | $25,560
Earnings limit in the year you reach full retirement age | $65,160 | $67,920
Maximum wages taxed for Social Security | $184,500 | $192,300
Maximum monthly benefit at full retirement age | $4,152 | $4,188
Medicare Part B standard premium, per month | $202.90 | $209.50 projected*
*Projection from the 2026 Medicare Trustees Report. Medicare announces the official 2027 premium, usually in November.
Worth doing before January
Watch for your 2027 benefit notice. It shows up in your my Social Security account at ssa.gov in late November (the account has to be set up by November 18), and paper notices arrive by mail in December.
Check your tax withholding. A bigger check can mean more of your benefit is taxed, because the income levels that trigger the tax ($25,000 single, $32,000 married filing jointly, counting half your benefits plus other income) have never been adjusted for inflation. The extra $6,000 deduction for people 65 and older helps through 2028, but it doesn't make Social Security tax-free, and it phases out above $75,000 of income ($150,000 for couples). Form W-4V changes your withholding.
62 or older but haven't filed? You still get this raise. Cost-of-living raises are added to your future benefit starting the year you turn 62, whether you've claimed.
Questions about how these changes fit into your overall investment and retirement income picture? Hafnia Financial clients can contact Jan Gleisner, Investment Adviser Representative, at (858) 750-6206.
This material is for general education only. It is not individualized investment, tax, legal or Social Security claiming advice and does not consider your personal situation. The earnings-limit example is hypothetical and for illustration only. Your actual benefit amounts are determined by the Social Security Administration. Please talk with your tax professional about your own tax situation.
Hafnia Financial, Inc. is a private company and is not affiliated with, endorsed by, or acting on behalf of the Social Security Administration, the Centers for Medicare & Medicaid Services, or any other government agency.
Advisory services are offered through Hafnia Financial, Inc., an investment adviser registered with the California Department of Financial Protection and Innovation. Registration does not imply a certain level of skill or training, and this communication has not been approved or verified by the SEC or any state securities authority. Investment advisory services are provided only under a written advisory agreement. Hafnia Financial, Inc. does not provide tax or legal advice. Jan Gleisner is also separately licensed as an insurance agent; insurance activities are conducted outside of, and are not supervised by, Hafnia Financial, Inc. Our Form ADV Part 2A is available on request or at adviserinfo.sec.gov.
Hafnia Financial, Inc. | 12544 High Bluff Drive, Suite 200, San Diego, CA 92130 | (858) 750-6206
Sources (October 2026): Social Security Administration 2027 COLA fact sheet, COLA history, and "Receiving Benefits While Working" (ssa.gov); IRS, enhanced deduction for seniors (irs.gov); 2026 Medicare Trustees Report.
This article is provided by Hafnia Financial, Inc., a California registered investment advisory firm, for informational and educational purposes only. The information contained herein does not constitute investment advice or a recommendation to buy, sell, or hold any security.
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