2027 Social Security
Find out how your benefits have changed

Average Retirement Benefits
Starting January 2027

Average Benefits – All Workers

• 2027: $2,170/mo (+$99)
• 2026: $2,071/mo

Maximum Benefits for Workers Retiring at Full Retirement Age

• 2027: $4,188/mo (+$36)
• 2026: $4,152/mo

Working While You Collect Social Security

• If you’re younger than age 67 in 2027, you can earn up to $25,560 per year. For every $2 you earn over this limit, your Social Security benefits decrease by $1.*
• If you turn age 67 in 2027, you can earn up to $67,920 per year. For every $3 you earn over this limit, your Social Security benefits decrease by $1.*
• If you’re age 68 or older in 2027, there is no earnings limit. You can earn as much as you want and receive your full Social Security benefits.
• What counts as earnings? These earning limits generally apply to wages from a job and net earnings from self-employment. They do not apply to investment income, pensions, or retirement account withdrawals.

* NOTE: Once you reach full retirement age (currently age 67), Social Security recalculates your benefits to give you credit for months when payments were withheld.

Social Security Revenues & Expenditures

Revenue Sources = $1.4493 trillion

• 99% – Taxation of benefits
• 75% – Interest
• 26% – Payroll taxes

Expenditures = $1.6095 trillion

• 37% – Railroad Retirement financial interchange
• 43% – Administrative expenses
• 20% – Benefit payments

SOURCE: 2026 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, Table II.B1.

2027 Social Security & Medicare Tax Rates

If you work for someone else, your employer pays 7.65%

If you work for someone else, you pay 7.65%

If you’re self-employed, you pay 15.3%

NOTE: The above tax rates are a combination of 6.2% for Social Security and 1.45% for Medicare. There is also a 0.9% Medicare wages surtax for those with wages above $200,000 single ($250,000 joint filers) that is not reflected in these figures.

Social Security Payments Explained

• Social Security (SS) retirement benefits are for people who have paid into the Social Security system through taxable income.
• Social Security Disability (SSD or SSDI) benefits are for people who have disabilities but have paid into the Social Security the system through taxable income.
• Supplemental Security Income (SSI) benefits are for adults and children who have disabilities, plus limited income and resources.

Maximum SSI Payments

How does Social Security work?

• When you work, you pay taxes into Social Security.
• The Social Security Administration uses your tax money to pay benefits to people right now.
• Any unused money goes into Social Security trust funds and is borrowed by the government to pay for other programs.
• Later on when you retire, you receive benefits.

How to qualify for retirement benefits

When you work and pay Social Security taxes, you earn credits toward benefits. The number of credits you need to earn retirement benefits depends on when you were born.

• If you were born in 1930 or later, you need 40 credits (10 years of work) to receive retirement benefits
• You receive one credit for each $1,970 of earnings in 2027
• 4 credits maximum per year

Did you know you can check your benefits status before you retire?

• You can check online by creating a my Social Security account on the SSA website. If you don’t have an account, you’ll be mailed a paper Social Security statement 3 months before your 61st birthday.
• It shows your year-by-year earnings, and estimates of retirement, survivors and disability benefits you and your family may be able to receive now and in the future.
• If it doesn’t show earnings from a state or local government employer, contact them. The work may not be covered within Social Security.

Sources: SSA.gov