Social Security recipients just got an update for the coming year. The 2026 Social Security COLA is in, and while it offers some relief, it also raises a bigger issue.
Are modest increases enough to protect retirees from the steep financial realities of aging, especially here on Staten Island?
For many older adults, Social Security provides a foundation. But income alone won’t cover what’s coming down the road.
The 2026 COLA: A 2.8% Boost
The Social Security Administration (SSA) has confirmed a 2.8% COLA for 2026. That figure is based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Here’s what the new COLA looks like in practice. If you receive $2,000 per month in benefits, a 2.8% increase adds roughly $56 to your check. That brings your monthly total to around $2,056, or $672 more for the year.
That’s helpful, but not game-changing. Especially not when you consider the rising cost of aging in New York City.
Your Benefits Won’t Cover Long-Term Care
For many retirees, a small monthly bump feels like progress. It might help with utilities, medication, or rising food prices. But income increases like this don’t touch the real financial risk: long-term care.
Here’s what too many people still don’t realize: Medicare will not pay for long-term custodial care. That includes assistance with dressing, eating, using the bathroom, or moving around the house.
Even if a doctor recommends in-home care, Medicare does not cover it unless it’s medically necessary and temporary.
Most care needs in old age are not short-term medical events. They are long-term and personal. That’s where the gap begins, and where serious planning becomes essential.
Staten Island’s Care Costs Are High
The price tag for aging in place, or moving to a care facility, keeps climbing. According to Genworth’s latest Cost of Care Survey, the median monthly cost of a home health aide in the New York metro area exceeds $6,500.
Median charges for assisted living average more than $9,000 per month. And if you need nursing home care, the median cost for a private room in our area is over $15,000 a month.
Medicaid Eligibility
Medicaid is the government program that covers long-term custodial care. It can help pay for a nursing home or even in-home care, but there’s a catch. You can’t qualify unless your income and assets fall below strict limits.
As of 2025, the asset limit for a single Medicaid applicant in New York is $32,396. That figure excludes certain non-countable assets, like personal belongings or a primary residence up to an equity cap, but many older adults exceed the threshold through modest savings or investments.
And if you transfer assets to relatives to get under the limit, Medicaid will look back five years. Improper or late transfers can trigger penalties that delay coverage.
The Solution: An Income-Only Irrevocable Medicaid Trust
To qualify for Medicaid without giving away everything you own, you need a legal strategy. A licensed elder law attorney can help you create an income-only irrevocable Medicaid trust.
This type of trust allows you to move assets, such as your home and brokerage account, out of your name while still receiving income from those assets. You give up access to the principal, but that’s the point. By giving up control, you legally remove the assets from your countable estate.
Once five years have passed since the transfer, those assets are no longer counted for nursing home Medicaid eligibility. And if you ever need care, Medicaid can step in without requiring a full financial collapse.
Why You Can’t Afford to Wait
The key to this strategy is timing. If you wait until you need care, it may be too late. The five-year look-back period makes last-minute planning risky and often ineffective.
That’s why elder law planning is best done proactively. Even if you’re healthy now, your future could change quickly. Planning today gives you more choices tomorrow, and may prevent a financial crisis down the line.
Let’s Get Started!
Call us right now at 332-456-0500 to schedule a consultation at our Staten Island, NY estate planning office, and if you would rather send us a message, fill out our contact form, and we will be in touch ASAP.
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