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By Aidan Johnson

With ongoing concerns about young adults leaving Long Island, other age demographics may be looking for the escape hatch.

Adults aged 60 and over, who account for roughly 20% of Suffolk County’s population according to a 2022 report from the Suffolk County Office for the Aging, have been feeling the impact of Long Island’s high prices as well.

Eric Stutz, a real estate broker based out of Baldwin who specializes in seniors and estates, said he sees Long Island as below average in being a senior-friendly place.

“I see a lot of my clients are heading to the Southeast, between North Carolina, Tennessee, Florida,” he said in a phone interview. “That seems to be the majority.”

Recently, a pair of Stutz’s clients had to choose between staying on Long Island with two of their children or moving to North Carolina, where their daughter lived.

“It was a tough decision, it took a couple of years,” Stutz said. “But their main reason for moving to North Carolina … was the cost of living on Long Island.”

JoAnn Kullack, the chair of Long Island’s chapter of the Retired Public Employees Association, sees many other senior citizens having to choose between living on Long Island or finding somewhere more affordable.

“Most seniors that I know do complain about the cost of living,” she said.

‘Most seniors that I know do complain about the cost of living.’

— JoAnn Kullack

Kullack believes that one of the big draws of staying on the Island for seniors is the abundance of medical care. Big university hospitals, such as Stony Brook, and the closeness of Manhattan hospitals and specialists offer valid incentives for seniors to want to stay.

“A lot of people that I know want to stay here on Long Island,” due to access to premium health care services, Kullack said. “They don’t wish to leave.” 

Kullack suggested lowering the utility rates could offer much-needed relief to Long Island’s senior citizens. While some programs are available that can assist, she added the qualifications are often unrealistic.

“A lot of people don’t qualify,” the RPEA chair said. “If you have two people in the household, you have to be [only earning] $30,000. How can you live here on that?” 

 “You’re taking into consideration paying taxes, paying for utilities, and even if you have no mortgage on your home, you still have to have enough money for food,” she added.

Town of Brookhaven Councilwoman Jane Bonner (R-Rocky Point) views Long Island as a challenging place to live, especially for those who do not make a lot of money.

“We need to address the high tax rate on Long Island,” she said in a phone interview. “We need to do a better job of taking care of our seniors and veterans. So many of our seniors are house rich and cash poor.”

Long Island can also be tough to navigate for seniors who cannot drive, as there is a lack of adequate public transportation.

“I know myself and my husband do a fair amount of taking our moms to doctor appointments and shopping,” Bonner said, adding, “Transportation services are cut when budgets are tight — bus routes are removed.” 

Brookhaven does have programs aimed at helping seniors who may have trouble with transportation, Bonner explained. Still, the town does seek to assist its aging population where it can. 

“We have our senior clubs, our senior transportation, nutrition at our senior centers and Meals on Wheels. We do our part.”

Bonner added that she wants to see seniors be able to “age in place,” where they want to be, instead of being pushed out.

“That’s what we need because if we can provide resources for our seniors to age in a place where they are most comfortable — in their home. It is more affordable that way than building large-scale senior complexes,” the councilwoman said.

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METRO photo

Without intervention, the current youth exodus from Long Island will have crippling effects generations from now. 

Here on Long Island, we excel at educating children. New and aspiring parents enter our communities for top-notch schools. This public education system offers a necessary springboard for prosperous lives.

Getting our youth to stay put and prosper on this Island is a puzzle. The cost of living is higher than in many other places around the U.S. Long Islanders have some of the country’s highest taxes, rents and utility costs. For too many young people, the costs outweigh the benefits, and they flee.

Consequently, we are losing generations of educated, homegrown Long Islanders. The investments we make into public schools are going unrewarded. 

Without a new generation of workers powering our local economy, municipalities will miss out on a sizable tax base. With fewer customers patronizing local businesses, our downtowns will suffer. With fewer new families, our first-rate school districts will shutter. And the loss of youth will deprive our communities of continual cultural enrichment.

For all these reasons, our leaders must take a close look at why young people are leaving, then do something about it. Given the multitude of factors and variables, a multiyear study on the conditions of youth flight may be in order.

Some measures can be taken now. Investments in new, affordable housing options are beneficial, creating competition in our often-inflated rental market that squeezes those just entering the workforce. Offering below-market rents can encourage young people to stay and live here.

We also ask our public officials to respect their taxpayers, taking a close forensic accounting of their budgets. Amid this inflationary period and uncertain economic times, they should practice greater fiscal responsibility, exploring ways to limit needless spending.

While acknowledging this need, we do not endorse excessive cuts to school, library and fire district budgets. These vital public institutions remain major draws to our Island.

With common-sense reforms and proper budgetary management, Long Island can retain and build upon our current population of young people. Through our efforts today, generations of Long Islanders could soon spring forth.

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By Michael Christodoulou

If you receive Social Security, you’ve probably already heard that your checks in 2023 will be bigger — considerably bigger, in fact. How can you make the best use of this extra money?

Here’s what’s happening: For 2023, there’s an 8.7% cost-of-living adjustment (COLA) for Social Security benefits — the largest increase in 40 years. Also, the monthly Medicare Part B premiums are declining next year, to $164.90/month from $170.10/month, which will also modestly boost Social Security checks for those enrolled in Part B, as these premiums are automatically deducted.

Of course, the sizable COLA is due to the high inflation of 2022, as the Social Security Administration uses a formula based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). So, it’s certainly possible that you will need some, or perhaps all, of your larger checks to pay for the increased cost of goods and services. But if your cash flow is already relatively strong, you might want to consider these suggestions for using your bigger checks:

Reduce withdrawals from your investment portfolio. When you’re retired, you will likely need to withdraw a certain amount from your portfolio each year to meet your expenses. A boost in your Social Security may enable you to withdraw less, at least for a year. This can be particularly advantageous when the markets are down, as you’d like to avoid, as much as possible, selling investments and withdrawing the money when investment prices are low. And the fewer investments you need to sell, the longer your portfolio may last during your retirement years.

Help build your cash reserves. When you’re retired, it’s a good idea to maintain about a year’s worth of the amount you’ll spend from your portfolio in cash, while also keeping three months’ of your spending needs in an emergency fund, with the money kept in a liquid, low-risk account. Your higher Social Security checks could help you build these cash reserves. (Also, it’s helpful to keep another three to five years’ worth of spending from your portfolio in short-term, fixed-income investments, which now, due to higher interest rates, offer better income opportunities.)

Contribute to a 529 plan. You could use some of your extra Social Security money to contribute to a tax-advantaged 529 education savings plan for your grandchildren or other family members.

Contribute to charitable organizations. You might want to use some of your Social Security money to expand your charitable giving. Your generosity will help worthy groups and possibly bring you some tax benefits, too.

While it’s nice to have these possible options in 2023, you can’t count on future COLA increases being as large. The jump in inflation in 2022 was due to several unusual factors, including pandemic-related government spending, supply shortages and the Russian invasion of Ukraine. It’s quite possible, perhaps even likely, that inflation will subside in 2023, which, in turn, would mean a smaller COLA bump in 2024.

Nonetheless, while you might not want to include large annual COLA increases as part of your long-term financial strategy, you may well choose to take advantage, in some of the ways described above, of the bigger Social Security checks you’ll receive in 2023. When opportunity knocks, you may want to open the door.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook. Member SIPC.

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