Throughout the U.S., millions of seniors live on social security benefits. Even though switching over to a fixed income can be challenging, there are a few steps seniors can take to make the transition as smooth and stress-free as possible. If your loved one has recently applied for social security benefits or plans on doing so in the next few years, here are a few financial management tips he or she should consider.
Start Downgrading Immediately
Review your loved one’s monthly expenditures to see where he or she can downgrade. Leasing brand new cars and eating at expensive restaurants might not be possible on a fixed income, and it is important to figure out new options as quickly as possible. Simple changes such as downgrading to a slightly older vehicle and skipping the visits to coffee shops a few times a week could end up saving thousands of dollars.
Seniors can face a variety of age-related challenges. Though some families choose to take on the caregiving duties, there may come a time when they need a trusted Folsom in-home care provider. Families sometimes need respite from their duties so they can focus on their other responsibilities, and some seniors need around-the-clock assistance that their families are not able to provide. Home Care Assistance is here to help.
Eliminate Any Remaining Debt
No one should try to pay off huge loans while living on social security benefits. For many seniors, mortgage payments could be the most significant monthly expense in their retirement years. If your loved one sells off an old car or receives a retirement bonus, he or she might want to put the money toward the highest interest loans. Aging adults who are about to retire should also try to reduce their credit card debt.
Maximize Senior Benefits
After the age of 60, your loved one might be eligible to receive benefits from dozens of different programs. Organizations such as the AARP and the National Council on Aging help older adults explore different types of senior benefits. Seniors with disabilities can consider disability insurance and other programs that can help them pay for in-home care.
If your aging loved one needs occasional help with bathing, grooming, cooking, or other basic household tasks, or if you need time to attend to important personal matters, reach out to Home Care Assistance, a leading provider of live-in and respite care. Folsom seniors can maintain their independence while living at home with the help of our reliable respite caregivers.
Take a Fresh Look at Survivor Benefits
When planning finances with a spouse, seniors should take a look at their survivor benefits. When one spouse dies, the other will continue to receive whichever social security check was higher. This is why many couples prefer to have one spouse wait to claim his or her social security benefits until they absolutely need the money.
If your loved one plans on moving within the next few years, he or she needs to carefully go over the tax laws in each individual state being considered. Most states don’t tax social security benefits, but your loved one also needs to take a look at the sales tax. Both Oregon and Delaware have absolutely no sales tax, which means your loved one essentially wouldn’t be paying any taxes at all. Once your loved one has made his or her taxes as low as possible, he or she will then only need to think about a few monthly expenses such as housing.
Some seniors need extensive 24-hour home care, and they may have to consider and plan for these expenses. If your senior loved one needs hourly or live-in care, Folsom Home Care Assistance can help. Our caregivers can assist with exercise and mobility, prepare nutritious meals, provide timely medication reminders, and help with a wide array of other important daily tasks. To learn about our premier senior care plans or to schedule a free in-home consultation, give us a call at 916.226.3737.