If you collect Social Security before full retirement age and keep working, your 2027 earnings limit will likely land near $25,440 to $25,680 for the full year, up from $24,480 in 2026. For people who reach full retirement age during 2027, the higher limit is projected to fall somewhere around $67,800 to $68,400, compared with $65,160 in 2026. These are projections, not official figures. The Social Security Administration announces the exact 2027 amounts in mid-October 2026. This guide explains how the earnings test works, why the projected numbers land where they do, and what the limits mean for your monthly check.
Two things drive the projection. The earnings test limits rise each year with the national Average Wage Index, not with the cost-of-living adjustment (COLA). Wages have been growing roughly 4 percent per year, which is what moves these caps. The separate 2027 COLA, projected at about 3.8 percent as of mid-2026, changes your benefit amount but does not set the earnings limit.
What the Social Security Earnings Test Is
The retirement earnings test applies only to people who claim Social Security retirement or survivor benefits before their full retirement age and continue to work. It does not apply once you reach full retirement age. At that point you can earn any amount with no reduction to your benefit.
The test does not permanently take money away. Benefits withheld because of excess earnings are credited back to you after you reach full retirement age through a higher monthly payment. Many people misread the earnings test as a penalty. It functions more like a temporary hold.
There are two separate limits:
- The lower limit applies if you are under full retirement age for the entire year. Social Security withholds $1 in benefits for every $2 you earn above the limit.
- The higher limit applies only in the calendar year you reach full retirement age, and only to earnings in the months before your birthday month. Social Security withholds $1 for every $3 above this limit.
2026 Limits and 2027 Projection Side by Side
The table below shows the confirmed 2026 amounts next to the projected 2027 figures. Treat the 2027 column as an estimate until the SSA releases official numbers in October 2026.
| Earnings test | 2026 (official) | 2027 (projected) | Withholding rate |
|---|
| Under full retirement age all year | $24,480/year ($2,040/month) | ~$25,440 to $25,680/year | $1 withheld per $2 over the limit |
| Year you reach full retirement age | $65,160/year ($5,430/month) | ~$67,800 to $68,400/year | $1 withheld per $3 over the limit |
| At or past full retirement age | No limit | No limit | None |
The projected ranges assume Average Wage Index growth of roughly 4 to 4.5 percent, consistent with recent years. The final amounts are rounded to the nearest multiple of $120 per year (the nearest $10 per month), which is why the estimates cluster around specific values rather than a single number.
Why the Limit Rises With Wages, Not COLA
This is the most common point of confusion. The COLA and the earnings limit move on two different tracks.
The COLA is tied to inflation, measured by the CPI-W during July, August, and September. The projected 2027 COLA is around 3.8 percent based on mid-2026 data. That number adjusts your monthly benefit amount.
The earnings test exempt amounts are tied to the national Average Wage Index. When average wages across the country go up, the earnings limits go up by a similar percentage the following year. Because wage growth and inflation are not identical, the earnings limit and the COLA usually rise by slightly different amounts.
In practice this means you cannot simply multiply the 2026 earnings limit by the projected COLA to get the 2027 figure. You have to use wage growth, which is what the projection above does.
How the Withholding Actually Works
A few examples make the mechanics clear. These use the 2026 lower limit of $24,480 for illustration. Swap in the 2027 figure once it is official.
Example 1: Under full retirement age all year. You are 63 and earn $30,480 in a year. That is $6,000 over the $24,480 limit. Social Security withholds $1 for every $2 over, so $3,000 is withheld from your annual benefit.
Example 2: Reaching full retirement age this year. You turn 67 in September and earn $80,160 in the months before September. Using the 2026 higher limit of $65,160, you are $15,000 over. The withholding is $1 for every $3, so $5,000 is withheld. Earnings from September onward do not count at all.
Example 3: Already at full retirement age. You reached full retirement age last year. You can earn $200,000 and lose nothing. The earnings test no longer applies to you.
Only earned income counts: wages from a job and net self-employment income. Pensions, investment income, interest, annuities, capital gains, and withdrawals from retirement accounts do not count toward the earnings test.
What Counts as Full Retirement Age in 2027
Your full retirement age depends on your birth year. For anyone born in 1960 or later, full retirement age is 67. People reaching full retirement age in 2027 were generally born in 1960, hitting 67 during the year.
| Birth year | Full retirement age |
|---|
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
Knowing your exact full retirement age matters because it determines which limit applies to you and when the earnings test stops applying entirely.
How This Connects to SSDI and SSI
The retirement earnings test is separate from the rules for disability benefits, and mixing them up is a frequent mistake.
If you receive Social Security Disability Insurance (SSDI), the relevant number is the Substantial Gainful Activity (SGA) limit, not the earnings test. SGA is a monthly threshold. Earning above it can affect whether you are considered disabled. The 2026 SGA limit is $1,690 per month for non-blind individuals, and the 2027 figure will be announced with the other cost-of-living updates.
If you receive Supplemental Security Income (SSI), earnings reduce your payment under a different formula, and there is a strict resource limit as well.
The retirement earnings test in this guide applies to retirement and survivor benefits claimed early, not to SSDI or SSI.
When the Official 2027 Numbers Arrive
The SSA publishes the official 2027 earnings test limits, COLA, and other adjustments in mid-October 2026, after the September CPI-W data is released. The COLA and the wage-indexed figures like the earnings limit come out together in the same announcement.
Until then, planning around the projected ranges above is reasonable. If you are close to a limit, build in a cushion. A projection can move by a few hundred dollars once the final Average Wage Index data is locked in.
Frequently Asked Questions
What is the projected Social Security earnings limit for 2027?
For people under full retirement age all year, the 2027 earnings limit is projected to be roughly $25,440 to $25,680, up from $24,480 in 2026. For those reaching full retirement age in 2027, the higher limit is projected around $67,800 to $68,400, up from $65,160. Official figures come from the SSA in October 2026.
Does the earnings limit go up with the COLA?
No. The earnings test limits rise with the national Average Wage Index, not the COLA. The COLA is tied to inflation (CPI-W) and adjusts your benefit amount. The two usually rise by slightly different percentages, so you cannot use the COLA to calculate the earnings limit.
Do I lose the withheld benefits permanently?
No. Benefits withheld under the earnings test are credited back after you reach full retirement age in the form of a higher monthly payment. It works like a temporary hold, not a permanent loss.
Does the earnings test apply after full retirement age?
No. Once you reach full retirement age, there is no earnings limit. You can earn any amount without any reduction to your Social Security benefit.
What income counts toward the earnings limit?
Only earned income counts: gross wages from a job and net earnings from self-employment. Pensions, investment income, interest, dividends, capital gains, annuities, and retirement account withdrawals do not count.
Is the SSDI earnings limit the same as the retirement earnings test?
No. SSDI uses the monthly Substantial Gainful Activity (SGA) limit, which is $1,690 per month for non-blind individuals in 2026. The retirement earnings test is an annual figure and applies only to retirement and survivor benefits claimed before full retirement age.
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