Social Security recipients will receive a 2.8 percent cost-of-living adjustment (COLA) to their benefits in 2026. The increase represents an additional $56 per month in payments for Old-Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI) benefits for senior citizens, widows and people with disabilities and special needs, respectively.
Although the annual Social Security COLA is tied to inflation, the benefits individuals receive are generally insufficient to cover the rising costs of aging and/or the ongoing care of family members with special needs. Moreover, depending on recipients’ combined income, their Social Security benefits may be subject to federal and state income tax. Instead, individuals at all income levels with and without special needs should rely on other estate planning strategies to ensure they and their loved ones can afford the care they need and deserve throughout their lives.
For example, during their working years, individuals may allocate savings to a tax-advantaged 401(k) plan or an individual retirement account (IRA) to help support a comfortable retirement in their later years. They may also invest in long-term care insurance to help pay for nursing care and personal assistance not covered by Medicare and life insurance policies with death benefits to help surviving family members maintain their lifestyles in the event of a family matriarch or patriarch’s passing. Another option for protecting assets from creditors and facilitating a smooth transfer to family members during the grantor’s life and after death is a wide array of trusts. A special needs trust is one option for providing long-term financial support to children who require specialized care without jeopardizing their eligibility for public assistance.
Individuals of all ages should regularly review their “my Social Security” accounts at www.ssa.gov/myaccount to see their earnings history and future benefit estimates. They should also work with their advisors to implement sound estate planning strategies that can help them prepare for the financial realities of growing older and caring for family members with special needs.
About the Author: Scott Montgomery is a director and financial planner with Provenance Wealth Advisors (PWA), an Independent SEC Registered Investment Advisor affiliated with Berkowitz Pollack Brant Advisors + CPAs and a registered representative with PWA Securities, LLC. He can be reached at the firm’s Ft. Lauderdale, Fla. office at (954) 712-8888 or info@provwealth.com.
Provenance Wealth Advisors (PWA), 200 E. Las Olas Blvd., 19th Floor, Ft. Lauderdale, Fla. 33301 (954) 712-8888.
Scott Montgomery is a registered representative of and offers securities through PWA Securities, LLC, Member FINRA/SIPC.
This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.
Any opinions are those of the advisors of PWA and not necessarily those of PWA Securities, LLC. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of PWAS, we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional. Prior to making any investment decision, please consult with your financial advisor about your individual situation.
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Posted on December 29, 2025