Many people today are already saving up for their golden years. However, when those years come, no one can really predict what will happen. And sometimes, seniors can face financial stress. While some are unavoidable, there are steps that can be taken now to minimize the impact these potential stressors could have later on in life and beyond. Here’s how.
Overview of the Biggest Financial Stresses Facing Seniors Over 70
The biggest financial stresses faced by seniors over 70 can largely be divided into four main areas: rising healthcare costs, inflation on a fixed income, long-term care, and sudden medical bills.
Rising Healthcare Costs
Rising healthcare costs pertain to bills related to medical treatments and medications needed to maintain daily health. Seniors often require a variety of medications as they age, especially if there are a number of health concerns.
Inflation On a Fixed Income
Inflation can make all the difference when it comes to a fixed income. Prices for goods and services will rise over time, outdating current wages or retirement funds. This decreases the purchasing power of seniors who live on fixed incomes, making remaining financially independent more difficult as time goes on.
Long-Term Care
Long-term care tends to become a more urgent issue as many people age. This can include anything from assisted living services & home health aides or changing residences such as moving from a house into an apartment or nursing home facility. Most of these are typically not covered under insurance plans.
Sudden Medical Bills
Sudden medical bills can be difficult to navigate and absorb. Seniors may particularly feel this pinch as they may have drained their resources towards other expenses needed to maintain daily life. They have no leeway if an unexpected medical bill surfaces.
How to Prepare for These Financial Stresses
It is important to plan ahead for these financial stresses and ensure that your loved one is well-prepared. There are five great options for doing so.
Establish an Emergency Fund
An emergency fund can provide a cushion if there ever comes a time when the money your senior loved one is living on runs low. Starting as early as possible is key.
Consider Long-Term Care Insurance
Also, consider looking into long-term care insurance. This could help defer some of the costs associated with transitioning into an assisted lifestyle in later years.
Take Advantage of Tax Breaks
Don't forget about taking advantage of any available tax breaks or credit opportunities. There are various options available for seniors that can be discussed with a tax professional. Every little bit helps.
Apply for Social Security Benefits
Social security benefits may not cover the full cost of living for senior citizens in our current economic environment. So it's wise to use a benefit estimate calculator to estimate how much your loved one might receive to verify their potential income and plan accordingly.
Set Up a Retirement Savings
Retirement savings are often depleted due to extended lifespans today. It is important that adequate provisions have been set aside while still working to receive regular paychecks.
Contact Senior Helpers Triangle for Further Guidance
At Senior Helpers Triangle, we understand and appreciate the unique needs of seniors over 70. We are here to provide consultation services to help you develop an action plan that fits your senior's individual situation and financial reality. Our team of professional staff members throughout Raleigh, Cary, and Apex has all the necessary experience in tailor-made care solutions so that you can focus on what is important: incredible life experiences with family or memories spent together. Contact us today for more information about how we can help your loved one avoid any potential financial stress!