The end of the year is a time for seniors to focus on their financial planning, ensuring they’re well-prepared for the upcoming year. It’s an opportunity to evaluate where things stand financially while getting a head start for the tax season. Assisting senior loved ones with these tasks requires balancing between offering support and maintaining their financial independence.
Reviewing Senior Benefits
Reviewing your senior loved one's benefits ensures they are taking advantage of all the benefits they are entitled to. It's also an opportunity to identify any changes or updates needed to optimize their financial situation. Here are a few basics to review:
- Medicare and Medicaid: Check for updates in your senior loved one's Medicare and Medicaid plans. These programs can change yearly, so it pays to see if they have the best coverage for their needs. Assess if any new plans are more beneficial or if existing plans need adjustments.
- Social Security: Review their Social Security benefits. These can also change from year to year. Verify that your senior loved one is receiving the correct amount. Check for any updates or changes in the regulations that might affect them.
- Pensions and Retirement Accounts: Examine pensions and retirement accounts to ensure they evaluate their performance. Check for required minimum distributions and confirm all accounts align with your senior loved one’s financial goals.
Updating Senior Budgets
Look into your senior loved one’s current expenses and income. List out all sources of income and determine their monthly expenses to get a picture of their current financial situation. Consider any changes that might occur in the new year, including changes in income and medical expenses or new financial goals. Adjust the budget accordingly to accommodate these changes. Look for saving opportunities, including cutting unnecessary expenses or finding more cost-effective services. Every little bit helps in securing financial stability.
Preparing for Tax Season
Tax season can be stressful, but the end-of-year financial planning for seniors can give you a head start. Begin by gathering all necessary documents, including income statements, receipts for medical expenses, and any other relevant financial documents. Having everything organized will make the process smoother.
Seniors may be eligible for specific tax deductions and credits. These can significantly affect the amount of taxes owed. Research and understand what deductions are available and how to claim them. If taxes seem overwhelming, seek professional advice. A tax professional can provide valuable assistance in navigating complex tax situations.
Supporting Senior Financial Independence
Encourage senior loved ones to take part in all financial decisions. It’s a way to make them feel in control while ensuring they understand their financial situation. There are various tools and resources available that can help. These include budgeting apps, financial planners, and community resources. Unfortunately, seniors can be targets of financial abuse. Ensure you set up safeguards to prevent this. Monitor their accounts for unusual activity and limit access to financial information to trusted individuals. You can also set up account alerts to track changes.
Need In-Home Support While Sorting Your Senior Loved One’s Finances?
Juggling year-end financial planning with caregiving responsibilities can get overwhelming. If you’re considering getting additional support for your senior loved one so you can focus on keeping their finances in order, we can help. Senior Helpers Burnsville provides professional home care, offering tailored solutions to seniors in Burnsville, Saint Paul, Cottage Grove, and Hastings, MN. Contact us to explore your options!