People are living longer and the costs of long-term Douglas County, CO, senior care are constantly rising. These changes are making it increasingly harder for retirees to live their lives on fixed incomes. However, there are a few strategies that can help your aging loved one better manage his or her finances.
1. Don’t Take Social Security Right Away
Seniors who wait until age 70 to start taking Social Security payments are likely to get higher monthly payouts than those who do not. In fact, their monthly checks are often as much as 8 percent higher than those who apply at age 65. Moreover, these payments will be permanently indexed for inflation. However, it is important to note this strategy might not be for everyone. If delaying Social Security requires your loved one to dip heavily into interest-earning investments, the drawbacks of doing so could outweigh the benefits over time.
2. Get a Part-Time Job
Many aging adults pad their retirement incomes with part-time work. Not only is this an excellent way for your loved one to generate extra cash for discretionary expenses, but it can also do wonders for his or her physical and mental health. Ongoing employment makes seniors feel both valuable and valued by giving them a sense of purpose. It also enables them to maintain robust social lives while dodging the constant pressures of stretching a fixed income.
The sooner your loved one makes the commitment to downsizing, the more money he or she can save. Once a person’s kids have grown up and moved out of the family home, maintaining a large residence rarely makes sense. Moving into a small apartment, condo, or cottage-style house can make your loved one’s primary residence both cheaper and easier to maintain.
4. Limit or Avoid Big Ticket Purchases
Many people dream of purchasing brand new boats, RVs, and other expensive items as soon as they exit the workforce. Although these things can provide a considerable amount of enjoyment, they may not retain their resale value over time. It is often far better to keep money in high-yield savings accounts. Keeping money in savings doesn’t mean your loved one has to forgo his or her dreams of touring the world by land or sea. He or she can always look at used recreational vehicles or take advantage of RV or boat rentals instead.
To learn about additional strategies to manage finances in the senior years, and for suggestions on ways your loved one can pay for in-home care services, reach out to Home Care Assistance. In addition to our respite and live-in care services, we also offer comprehensive Parkinson’s, stroke, and dementia home care Douglas County, seniors trust. For more information and to schedule a no-obligation consultation, call 720-287-1685 today.