N.Y. 65 & Counting: What New York Seniors Must Know About Social Security & Medicare Risks

Medicare’s Hospital Insurance (Part A) Trust Fund is projected to be depleted by 2033. After that, it could only cover about 89% of hospital benefits without congressional action.

Social Security’s combined trust funds face depletion by 2034, after which only 81% of scheduled benefits would be payable.

Medicare Part B premiums are expected to rise 11–12% in 2026, likely outpacing the average 2.7–2.8% Social Security cost-of-living adjustment (COLA).

Healthcare costs are above average. A study by the Employee Benefit Research Institute found New York retirees can expect to spend nearly $350,000 on healthcare over retirement — higher than the national average of ~$315,000.

Medicare Advantage is popular but confusing. In 2025, more than 54% of New York Medicare beneficiaries are enrolled in Medicare Advantage plans. Options vary widely across counties, and benefits like dental, vision, and hearing coverage differ plan-to-plan.

Prescription drug costs hit harder. Nearly 70% of New York adults 65+ take three or more prescriptions, and while the Inflation Reduction Act begins capping insulin at $35/month, many other drugs remain high-cost.

Local incomes are tighter. The average Social Security retirement benefit in New York is about $1,790/month, but the average monthly Medicare Advantage premium in NY is $28.20 — and that doesn’t include out-of-pocket costs, deductibles, or supplemental coverage.

65 is not the “full retirement age” anymore. For New Yorkers born in 1960 or later, full Social Security retirement age is 67. Claiming earlier means smaller checks.

COLA increases may not keep up. Any boost in benefits could be offset by rising Medicare premiums and healthcare inflation.

County-by-county differences matter. Monroe County seniors may face very different Medicare Advantage options than those in Erie, Albany, or Suffolk. Comparing plans carefully each year is critical.

Working past 65? In 2025, if you claim Social Security before full retirement age and earn over $23,400/year, your benefit could be reduced.

✅ Mark your calendar for your Initial Enrollment Period — a 7-month window around your 65th birthday. Missing it may mean lifelong penalties.

✅ Compare plans locally. Don’t assume what works for a friend downstate works in Western NY. Premiums, networks, and drug coverage vary by county.

✅ Budget conservatively. Build rising healthcare costs into your retirement plan — not just premiums, but also dental, vision, and prescriptions.

✅ Seek guidance. Medicare and Social Security rules are complex, and mistakes can cost thousands. A licensed New York agent can walk you through your options.