Social Security COLA Increase 2026: What Florida Seniors Need to Know

How the 2.8% adjustment affects your benefits and long-term care planning

If you're receiving Social Security benefits in Florida, there's important news about your 2026 payments. The Social Security Administration has announced a 2.8% cost-of-living adjustment (COLA) that will take effect in January 2026. While this increase brings some welcome relief, it's worth looking at what this really means for your budget and how it might affect your eligibility for long-term care assistance.

What the 2026 COLA Means for Your Benefits

The 2.8% increase will apply to all Social Security programs starting January 2026. Here's what you can expect based on the type of benefits you receive.

Supplemental Security Income (SSI) Recipients

If you're currently receiving the maximum SSI benefit of $967 in 2025, your monthly payment will increase to $994 in 2026. While $27 might not seem like a dramatic change, it can make a difference when every dollar counts toward your monthly expenses.

Current SSI Maximum (2025): $967/month
New SSI Maximum (2026): $994/month
Monthly Increase: $27

Social Security Retirement and Disability Benefits

For those receiving retirement or disability benefits, your current monthly check will also see a 2.8% boost. The actual dollar amount of your increase will depend on your individual benefit level, but all recipients will see this percentage applied to their current payments.

The Reality Behind the Numbers

While any increase in benefits sounds positive at first, there's an uncomfortable truth we need to address: the 2.8% adjustment might not actually keep pace with what you're experiencing at the grocery store, pharmacy, or when paying your utility bills.

A Word of Caution: Current projections for 2025 inflation range from 2.8% on the low end to as high as 3.5%. This means that for many goods and services, the COLA increase may not fully protect your purchasing power. Your money might not stretch as far as it did before, even with the adjustment.

That said, something is better than nothing. The 2.8% increase should still be factored into your financial planning for next year, particularly if you're working with tight margins or trying to decide whether you can continue paying privately for services you need.

How COLA Affects Medicaid Eligibility for Long-Term Care

Here's where things get particularly important for Florida residents who are either receiving long-term care services or anticipating needing them soon. The income limits for Medicaid long-term care programs will also adjust in 2026.

The Income Cap Changes

In Florida, Medicaid uses what's called an "income cap" to determine who qualifies for assistance with long-term care costs—whether that's care in your home, in an assisted living facility, or in a skilled nursing facility. This cap will increase from $2,901 per month in 2025 to $2,982 per month in 2026.

2025 Income Cap: $2,901/month
2026 Income Cap: $2,982/month

What Happens If Your Income Exceeds the Cap

If your monthly income exceeds $2,982 starting in 2026, you're not automatically disqualified from Medicaid assistance. However, you will need to establish something called a Qualified Income Trust (QIT), sometimes referred to as a Miller Trust.

A QIT is a special type of trust that allows individuals whose income exceeds the Medicaid limit to still qualify for benefits. Your excess income gets deposited into this trust, and then the trust pays for your care expenses according to specific rules. While this sounds complicated, it's a well-established tool in Florida Medicaid planning, and setting one up is fairly straightforward when you work with someone who handles these regularly.

Why Now Is the Time to Think About Long-Term Care Planning

If you're currently paying out of pocket for home care, assisted living, or nursing home care, you've probably noticed how quickly these expenses add up. Many families watch their savings dwindle month after month, assuming they have no choice but to spend down everything before they can get help.

That's not actually true.

Florida law provides legal ways to protect your assets while still qualifying for Medicaid assistance with long-term care costs. The key is planning ahead rather than waiting until your resources are nearly exhausted. Here's why the start of a new year—especially one with a COLA adjustment—is an ideal time to think about this:

1. You can assess your full financial picture. With new benefit amounts taking effect, you can get a clearer sense of whether your income and assets will sustain your current care arrangements or whether you need to think about other options.

2. Asset protection strategies work better with time. Some planning techniques require action months before you apply for Medicaid. The sooner you start, the more options you have available.

3. Your savings deserve protection. You worked hard to build what you have. Proper planning can help preserve those resources for your spouse, your legacy, or your own peace of mind, rather than seeing everything go toward care costs.

How Medicaid Planning Works in Florida

Medicaid planning isn't about hiding assets or breaking rules. It's about using the legitimate provisions in Florida law to position yourself for benefits while protecting what matters most to you.

This might involve:

• Properly structuring your assets so they don't count against Medicaid eligibility requirements

• Setting up trusts that protect your home or savings

• Timing your Medicaid application correctly

• Establishing the necessary documentation and legal structures before they're urgently needed

• Making sure your spouse is financially protected if you need facility care

Every family's situation is different, which is why cookie-cutter advice doesn't work well in this area. What works for your neighbor might not be the right approach for your circumstances.

Estate Planning and Long-Term Care: Two Sides of the Same Coin

If you're thinking about long-term care costs, you should also be thinking about your overall estate plan. These two areas overlap significantly, and addressing them together often leads to better outcomes.

For instance, certain types of trusts can serve both estate planning purposes (like avoiding probate and protecting beneficiaries) and Medicaid planning purposes (like preserving eligibility while protecting assets). Powers of attorney, health care directives, and other estate planning documents become even more important when long-term care enters the picture.

A complete approach looks at your whole situation: what you want to accomplish, who you want to protect, and how to make sure your wishes are carried out while also positioning you for benefits if you need them.

Helpful Resources

For more information about Medicaid planning and elder law in Florida, check out these resources:

ElderNeedsLaw.com - Main Website: https://elderneedslaw.com

Medicaid Planning Lawyer - Additional Resources: https://medicaidplanninglawyer.com/

Book: "Medicaid: How to Have Some of Your Assets Pay for Your Long-Term Care Expenses" - Available on Amazon: https://www.amazon.com/Medicaid-some-your-long-term-expenses/dp/1513634712

Taking the Next Step

If you're anywhere in Florida and you're concerned about how you'll pay for long-term care, or if you simply want to make sure your estate plan is in order, now is a good time to have that conversation.

You don't have to wait until you're in immediate need. In fact, the best outcomes usually happen when people plan proactively rather than reactively. Whether you're currently paying for care and watching your savings decrease, or you're just starting to think about what the future might hold, talking with a board-certified elder law attorney can give you clarity about your options.

Ready to Protect Your Future?

Schedule a consultation to discuss your estate planning and Medicaid planning options. Get personalized guidance based on your unique situation and Florida law.

Visit: elderneedslaw.com

Available to Florida residents statewide

Final Thoughts

The 2026 Social Security COLA increase of 2.8% brings modest relief to beneficiaries, but it's important to look at the bigger picture. For many Florida seniors, the real question isn't just about a slightly higher monthly check—it's about how to make their resources last, how to pay for the care they need, and how to protect what they've worked a lifetime to build.

The good news is that you have options. Florida law provides pathways to protect your assets while still accessing the care and services you need. The even better news is that taking action now, before you're in a situation where you must make rushed decisions, gives you the best chance of achieving the outcomes you want.

Your 2026 budget might look a little better with the COLA increase, but your long-term financial security deserves more than just incremental adjustments. It deserves a real plan.

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