Each fall, millions of Americans who rely on Social Security wait for one important announcement: the annual cost-of-living adjustment, or COLA. For SSDI and SSI recipients here in Indiana, the COLA, and the work limits that change alongside it, can directly affect your monthly budget and how much you’re able to earn.
Here’s what to watch for heading into 2027, and what we know so far.
First: What Is the COLA?
The cost-of-living adjustment is an annual increase to Social Security and SSI benefits designed to help payments keep pace with inflation. It’s based on changes in a federal measure of consumer prices, and the SSA typically announces the official figure in October, with the increase taking effect the following January.
Because it’s tied to inflation, the COLA rises and falls from year to year.
What We Know About the 2027 COLA
Here’s the important caveat: as of this writing, the official 2027 COLA has not yet been announced. The SSA is expected to release the confirmed figure in mid-October.
Until then, the numbers circulating are projections, not official figures. Based on recent inflation data, independent analysts have projected the 2027 COLA to land somewhere in the range of roughly 3.4% to 3.6%. If that holds, it would be a larger increase than the prior year’s adjustment.
But projections can shift, and only the SSA’s official announcement is final. In fact, the SSA’s own COLA information confirms the next adjustment will be announced in October. We’ll update our guidance once the confirmed number is released, and we’d encourage you to confirm the official figure directly with the SSA before making any financial decisions.
You can check the SSA’s official COLA information here.
Work Limits Change Too: Understanding SGA
Here’s something many SSDI recipients don’t realize: the COLA doesn’t just affect your benefit amount. It’s also connected to the work limits that determine eligibility.
For SSDI, the key concept is Substantial Gainful Activity (SGA). If you earn more than the monthly SGA limit through work, the SSA generally considers you able to engage in “substantial” work, which can affect your eligibility for benefits.
These SGA thresholds are adjusted over time. As a current baseline, the SSA has set the 2026 monthly SGA amounts at $1,690 for non-blind individuals and $2,830 for statutorily blind individuals. The 2027 figures will be recalculated in connection with the annual adjustment, so they’re expected to change, but like the COLA, the official 2027 numbers will come from the SSA.
Learn more about how SSDI works here.
Why This Matters for SSDI Recipients
If you receive SSDI and do any work, these limits are critical:
- Earning under the SGA limit generally allows you to keep working part-time without automatically jeopardizing your benefits.
- Earning over the SGA limit can signal to the SSA that you’re capable of substantial work, potentially affecting eligibility.
- The limits typically rise with cost-of-living changes, which can give you a little more room to earn, but you need the correct, current-year figure.
Because the exact numbers change annually, always verify the current year’s SGA amount before adjusting your work activity.
Why This Matters for SSI Recipients
For SSI recipients, the COLA affects the federal benefit rate, the maximum monthly payment. When the COLA increases, the maximum SSI payment generally increases too. SSI also has its own income and resource rules that differ from SSDI’s work-focused SGA test.
If you receive SSI, or both SSI and SSDI, understanding how a COLA change affects your specific situation is worthwhile.
Learn more about SSI here.
A Word of Caution About Working While on Disability
The rules around working while receiving disability benefits are genuinely complex, there are trial work periods, income exclusions, and reporting requirements that can trip up even careful recipients. Earning over a limit without understanding the consequences can put your benefits at risk.
If you’re thinking about working while on SSDI or SSI, or you’re worried a COLA-related change affects you, it’s worth talking to someone who understands the rules.
Stay Informed, and Get Guidance When You Need It
The 2027 COLA and updated work limits will shape a lot of household budgets across Indiana. Once the SSA releases the official figures in October, you’ll want to know exactly how they apply to your benefits and your ability to work.
If you have questions about your SSDI or SSI benefits, or you’re navigating a claim or appeal, Poag Disability Law is here to help. Contact us for a free consultation.
Frequently Asked Questions
The official 2027 COLA had not been announced as of this writing; the SSA is expected to release it in mid-October. Independent analysts have projected roughly 3.4% to 3.6%, but those are projections only, the SSA’s announcement is the final word.
The COLA is typically announced in October and takes effect the following January, appearing in benefit payments at the start of the new year.
SSDI uses a monthly Substantial Gainful Activity (SGA) limit. For 2026, that limit is $1,690 for non-blind individuals and $2,830 for statutorily blind individuals. The 2027 figures are expected to change, so always confirm the current-year amount.
Yes. When the COLA increases, the maximum federal SSI benefit rate generally increases as well. SSI also has its own income and resource rules separate from SSDI’s SGA test.