Wallet Watch newsletter: Social Security benefits will increase in 2027. Is it enough to counter inflation?

If you benefit from Social Security, you can expect a 3.6% cost-of-living adjustment in January. That's the largest increase since 2023 and, for the average retiree, an additional $75 per month. 

Still, it might not be enough for Long Island seniors, experts said. Regional inflation over the past year stood at 4.5% as of September, and rising prices have forced some retirees to cut back on spending, Celia Young recently reported for Wallet Watch. 

Financial experts generally advise saving around 25 times your annual income, an amount that can surpass $3 million for many Long Islanders — although that savings goal might differ depending on how much you plan to spend.  

That said, it can be difficult to save on Long Island. A little over 45% of seniors over 70 relied solely on Social Security income in 2023, according to a 2025 study from the nonprofit Center for an Urban Future.

Here are some retirement planning tips from experts (young people, this applies to you too):

• Save with multiple retirement accounts. That could be a 401(k) or 403(b) through your employer, an invested brokerage account, an individual retirement account (IRA), Roth IRA or a Health Savings Account (HSA).
• Start saving early. Workers between 20 and 40 should invest aggressively, and can even treat an HSA as a long-term tax-free savings account to cover medical expenses during retirement. 
• There are also state and federal programs that can help seniors save money on energy bills, property taxes and medical insurances. 

Celia outlines those programs and more in her latest on how retirees are aging in place. Read more here. 

From our readers

Chris Del Bello asks:

I was wondering during the summer months, [why] I'm paying so much money just for the very little amount of natural gas that I used. I have National Grid.

That's a great question. I passed it along to National Grid, and a spokeswoman answered: "That would happen if the customer signed up for balanced billing to even out bills during the year."

National Grid offers a Budget Plan that takes what you usually pay in a year and breaks the cost into 12 monthly payments. The program is meant to keep bills more predictable for customers, who might see higher costs from heating in the winter and air conditioning in the summer. You can read more about that plan on their website. 

Chris, I can't say for certain if that's what's happening with your bill. But check it out. You can call their customer service line at 1-800-930-5003 — make sure you have your account number — to check. And you can always follow up with us here at Wallet Watch.

Have a question you'd like to submit? Confused by a bill? Spotted a price hike? Ask our team and we might answer it in the next edition. Email walletwatch@newsday.com or click here.