Most railroad retirement annuities are scheduled to increase in January, with Tier I benefits rising 3.6% and Tier II benefits increasing 1.2%. The Tier I adjustment matches the cost-of-living increase for Social Security benefits. The Tier II increase equals 32.5% of the Consumer Price Index increase.
Railroad retirement annuitants subject to earnings limits can earn more in 2027 without a reduction in benefits because those limits are increasing based on growth in average national wages. For those under full retirement age throughout 2027, the exempt earnings amount rises to $25,560 from $24,480 in 2026. For beneficiaries attaining full retirement age in 2027, the exempt earnings amount (for the months before the month full retirement age is attained) increases to $67,920 in 2027 from $65,160 in 2026.
Visit the Railroad Retirement Board website for more information.