For many seniors over the age of 70, financial issues can be a major source of stress. Whether it's inadequate retirement savings, rising healthcare costs, unexpected long-term care expenses or confusion around Social Security rules, preparing for and managing your finances in later life can seem daunting. Without early planning and proactive steps to secure their future, many seniors may face some serious financial hardships when the time comes. If you're acting as a caregiver for an elderly relative, make sure you're prepared for these common financial issues.
Common Financial Stressors For Seniors Over 70
There are a number of common financial challenges that often crop up for seniors, even those who may have previously thought that they were prepared for retirement.
- Inadequate Retirement Savings – The lifetime wealth accumulation of seniors over 70 is often far weaker than the generations before them. This leaves many retirees living off Social Security or a pension while high bills still need to be paid.
- Long-Term Care Costs –We all want our senior loved ones to live out their days safely and comfortably, but long-term care can be an expensive proposition. Without proper planning, expenses for nursing home stays on top of added medical costs can quickly drain any savings that you may have created.
- Rising Healthcare Costs –Healthcare costs are rising across the board. For many seniors, that can mean a much higher cost of care than anticipated, especially if they find themselves dealing with chronic medical conditions.
- Social Security Challenges – Knowing how best to navigate confusing Social Security rules just adds one more financial stress on top of everything else. Navigating these federal policies takes patience and expertise in order to maximize your benefits down the line.
Smart Steps To Prepare Now
Fortunately, there are a number of proactive steps you can take now to make sure that your elderly loved one is in the best position possible when it comes time to deal with their financial obligations.
- Make Smart Investments - Retirement savings and investments should be carefully managed at all stages of life, but especially after 70. A qualified financial advisor can help guide you through sound investment decisions, which could ultimately mean much more in retirement funds down the road. If you're preparing to care for an elderly loved one, you may want to make your own set of smart investments so that you will have the funds on hand to provide needed care.
- Set a Budget (And Stick To It) - Budgeting is key for seniors trying to manage their finances efficiently. Work with your loved one to figure out monthly expected costs, and then set aside enough money each month to cover those expenses without difficulty or straining existing funds too much.
- Take Advantage Of Tax Breaks – Certain tax exemptions or credits may be applicable for seniors over 70 who qualify under certain income levels or conditions. Make sure that you're taking advantage of any breaks that may apply here as well!
- Build an Emergency Fund – Unexpected home repairs and medical bills happen, often causing sudden duress on existing savings accounts if there's no backup plan available. An emergency fund can help provide peace of mind and make it easier for you to take care of what your loved one might need.
- Understand Social Security Rules – As mentioned above, making sense of Social Security rules can seem confusing since they change constantly. Seeking assistance from professionals specializing in this service could be invaluable when navigating government policies surrounding senior benefits. It's always helpful knowing exactly how these rules apply over different income thresholds and across various age groups as well!
Help Caring For Senior Loved Ones Is Available
It's never too late to make smart financial decisions that will make it easier to care for a senior loved one. One smart investment you may want to make is in-home care services. An in-home care provider can help keep your loved one living at home longer, alleviating some of the financial strain that may come up with a move to a nursing home. At Senior Helpers Seal Beach, Los Alamitos, we offer in-home care services to seniors in Cypress, Los Alamitos, Seal Beach, Long Beach, and Hawaiian Gardens. Contact us today to learn more.